Intel Capital, the chip maker’s global investment arm, is to invest an additional $500m (£253m) in Chinese technology firms involved in wireless broadband, media, telecommunications and “Clean Tech”.

Intel named two recipients of new funds, Holdfast Online Technology, which hosts third-party online and LAN-based games, and Newauto Video Technology, a provider of video equipment and integration services for television stations.

The funds are designed to boost the Chinese economy and help Intel profit on China’s rapid economic growth. Based on its previous investment record in China, Intel Capital can expect to see as much as a 20 percent annual return within the next five to seven years.

A previous Intel Capital Technology Fund announced in 2005 saw $200m (£101m) invested in Chinese companies. Intel Capital's total holdings in companies across the world were estimated to be worth $2.6bn (£1.3bn) in September 2007.