Intel Capital invests in Chinese chip companies amid tech tensions

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SHANGHAI (Reuters) – Intel Capital, a try arm of chipmaker Intel Corp INTC.O, has invested in dual Chinese startups in a semiconductor sector, a association announced on Wednesday, as partial of a latest collection of deals.

The investments in companies that contest in fields typically dominated by U.S. players come as Intel stays inextricable in tensions between a United States and China over chip manufacturing.

ProPlus, one a Chinese startups Intel Capital has funded, creates EDA program that chip makers use to pattern their products before production them.

The leaders in that field, Cadence Design Systems Inc CDNS.O, Mentor Graphics, and Synopsys Inc SNPS.O – all accost from a United States.

ProPlus Chairman and CEO Zhihong Liu once worked as a VP during Cadence Technologies while a director, Chenming Hu, once served as a CTO of Taiwan Semiconductor Manufacturing Co Ltd 2330.TW (TSMC).

Spectrum Materials, formed in a southern Chinese range of Fujian, creates gases vicious for semiconductor fabs to furnish earthy chips. The zone is typically dominated by players in a United States, South Korea, and Japan.

China’s supervision has committed billions of dollars to assistance account a domestic semiconductor industry, that it views as vicious to throwing adult with a United States and other governments.

The stakes for such initiatives have increasing after a United States imposed restrictions on American companies provision to Huawei, China’s tip telecommunications eqiupment provider and a heading chip builder in a possess right.

Intel Capital has consistently invested in Chinese startups along with tiny chip companies from around a world. In 2019 and 2018 it announced investments in dual Chinese chip startups.

This collection of announced investments comes days after Intel CEO Bob Swan wrote a minute to a U.S. Department of Defense expressing willingness to build a chip fab in a United States, with a idea of ensuring U.S. technological leadership.

(Reporting by Josh Horwitz; Editing by Stephen Coates)

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