Intel Capital, the chip giant's venture capital arm, yesterday made its first foray into the nation's clean technology sector, purchasing a $20 million stake in local solar energy firm Trony Solar Holdings Co Ltd.
"China's renewable energy industry is experiencing rapid development," said Cadol Cheung, managing director of Intel Capital Asia Pacific. "We believe these investments will be a catalyst to drive local clean tech innovation."
Trony Solar, established in 1993, is one of China's biggest manufacturers of thin-film solar energy equipment, with sales in more than 20 nations.
The Shenzhen-based company will use the investment to ramp up its production capacity as well as strengthen its R&D capabilities.
Intel Capital also signed an agreement to invest in NP Holdings Limited, a technology company focusing on massive electricity storage systems.
"These investments demonstrate Intel Capital's ongoing commitment to investing around the globe and its strategic focus on cleantech," said Arvind Sodhani, president of Intel Capital.
Over the past 10 years, Intel Capital has invested in more than 80 companies on the Chinese mainland and in Hong Kong. In this April, it established a $500 million Intel Capital China Technology Fund II in April.
Venture capital investments in China's clean technology sector soared in recent years. In 2007, venture capitalists spent $550 million to fund local clean technology startups, according to a report by researcher Cleantech China.
Source: China Daily