Intel is partnering with the Shanghai Media Group in Beijing to develop solutions for broadband media delivery.

SMG Broadband Broadcasting, a subsidiary of the Chinese media group, recently received an IPTV licence to provide internet protocol television services.

Intel and SMG will develop solutions for the production of media content optimized for broadband delivery for televisions, computers and mobile phones.

Intel will also establish a venture capital fund of US$200 million to invest in Chinese technology companies developing innovative hardware, software and services.

“Intel plans to stimulate local technological innovation and the continued growth of China’s IT industry,” said Intel president and chief executive Paul Otellini at a summit in Beijing. “We will invest in Chinese companies to accelerate technology adoption locally and to foster development of innovative technologies with potential for global distribution.”

Intel made its first investment in China in 1998 and has since invested in nearly fifty Chinese companies. With a workforce of 5,000 employees in China, Intel has invested more than $1.3 billion in China over the last twenty years.