Intel chases Chinese stimulus cash

INTEL, which has been raking in cash from China with its deals with Lenovo, Founder and Haier, can now be seen cap in hand rattling a tin at the Beijing government offices.

As the recession continues to bite into the PC market in the Middle Kingdom, Chipzilla hopes to profit more from the Chinese government's economic stimulus package.

Intel, which reported revenues of $8 billion in the second quarter of this year, has noted that the Chinese are giving away cash for anyone who can help with its railroad construction, rural improvements and healthcare reform initiatives.

Intel's logic is that these programmes will need huge investments in advanced technology with shedloads of cash to be splashed out on computers, servers and mobile devices for the world's largest population.

After all you always need computer chips when you are laying railroad tracks or building hospitals, and where would farmers be without computers to help them grow crops?

Ian Yang, the president of Intel China told China Daily that it was the first time in 20 years that Intel "planned to integrate resources in China to fuel the country's long-term development".

The Chinese government's 4 trillion yuan (£355.1 billion, €409.2 billion, or $585.5 billion) economic stimulus plan was announced earlier this year in an effort to maintain the country's near eight percent economic growth. µ