Intel to pump $1.5bn into Chinese chip companies

Intel wants a bigger bite of China's smartphone market.The US chipmaker has announced plans to invest up to Rmb9bn (about $1.5bn) for a minority stake in Tsinghua Unigroup, a government-affiliated private equity fund that controls Chinese chip designers Spreadtrum Communications and RDA Microelectronics.The US company plans to work with RDA and Spreadtrum to increase the use of its products inside made-in-China mobiles and tablets.This is the latest by Intel chief executive Brian Krzanich to get Intel chips into phones.

Mr Krzanich said in a statement:China is now the largest consumption market for smartphones and has the largest number of Internet users in the world.These agreements with Tsinghua Unigroup underscore Intel's 29-year-long history of investing in and working in China. This partnership will also enhance our ability to support a wider range of mobile customers in China and the rest of the world.