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Intel offers olive branch of investment for growth

By GAO YUAN (China Daily) Updated: 2015-04-09 07:52

Intel offers olive branch of investment for growth

Intel CEO Brian Krzanich delivers a keynote address prior to the 2014 International CES, a trade show of consumer electronics, at Mandalay Bay in Las Vegas, Nevada on January 6, 2014. [Photo / IC]

Intel Corp said on Wednesday that it will invest 120 million yuan ($19.3 million) to promote grass roots technology innovation in China amid deepening mistrust over information security between the United States and China.

Chief Executive Officer Brian Krzanich has sought to placate the Chinese authorities by pledging wider collaboration with local institutes and universities.

The moves came as the US added three major partners of Intel in the supercomputing sector to a technology embargo list.

Krzanich said that the vibrant atmosphere of innovation in China will help Intel find new business opportunities beyond personal computers and other traditional information technology sectors. "There is a huge opportunity for Intel to continue to grow together (with China). This growth is being driven by the public cloud, network transformation, big data and new IT services," he said.

About 80 million yuan of the investment will be used to set up an angel investment fund. It will be the first seed-stage fund for Intel, and it will focus on companies preparing for going public.

The investment is evidently an attempt to butter up the Chinese officials. Earlier this year, in a move to boost the slowing economy, the central government encouraged individuals to start their own businesses. Ian Yang, president of Intel China, said that the newly announced investments are in line with that strategy.

Intel said that it is also considering deeper research ties with local universities. Chengdu-based Southwest Jiaotong University and Tsinghua University in Beijing are the first partners of the Intel innovation project.

"It is not good enough to bring products that we already developed or already used elsewhere. A real partnership means you bring it first to China," Krzanich said. "We want to share pioneering ideas up front with China."

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