Chip-maker Intel Corporation plans to invest up to $3 million each in six Indian companies developing Wi-Fi technology.
Wi-Fi technology, also known as IEEE 802.11b, is an emerging technology that provides high-speed wireless Internet access in many locations around the world, including airports, cafes, corporate offices, universities, factories and homes.
"We are in the process of identifying these companies," officials of Intel Capital, the chipmaker's strategic investment arm, said.
This is part of Intel's $150 million fund for investments into companies developing Wi-Fi technology.
Sriram Viswanathan, Intel's managing director for broadband & wireless networking, said Wi-Fi use is experiencing very high growth and estimate show that it could grow to 30 million laptops equipped with this technology.
He said it will fundamentally change the way people use technology and enable high-speed internet access anytime, anywhere for business and consumer use.
Intel has already invested around $100 million in over 30 companies in India during the last four years.
Intel's director for strategic investments for Intel Capital, South Asia Siddhartha Das said the company does not normally invest at an early stage in start up companies until they have achieved some milestones.
Das said by getting funding from Intel, the companies have early access to specifications and product roadmaps apart from early access to emerging market segment opportunities.
They also have a forum to discuss new technologies and opportunities supporting internet economy with other Intel-funded company.
These companies also have early access to reference platforms and developer's toolkits, possible joint collaboration on future specifications and products and even reference selling of company's products.
Intel has three major sources of funds for investing in companies. The IA64 Fund is a quarter billion dollar equity investment fund that invests in technology companies developing innovative enterprise solutions for Itanium-based server and workstations.
This fund invests in companies developing tools and technologies for internet, enterprise and workstation solutions.
Co-investors in the Intel 54 include Compaq, Dell, Hewlett-Packard, Intel, NEC and SGI with Intel coordinating the fund activities.
The Intel Communication Fund is a $500 million equity investment fund that invests in technology companies developing innovative networking and communications solutions while the third fund is the Intel Capital whose focus areas for investments include, microprocessor technology, servers, workstations, desktops, mobile and Internet home appliances.