An Intel employee walks past the company's logo displayed in front of the computer chip maker's headquarters in Santa Clara, California. Intel Corp Thursday said it would invest 386 million dollars (11.5 million US) in Taiwanese carrier VMAX Telecom Co. to help it develop the island's first fourth-generation mobile network.

Intel Corp Thursday said it would invest 386 million dollars (11.5 million US) in Taiwanese carrier VMAX Telecom Co. to help it develop the island's first fourth-generation mobile network.

VMAX aims to deploy Taiwan's first mobile WiMAX network which is slated to become operational next year.

WiMAX 4G technology provides high-speed broadband wireless services, sharply improving high-quality image and data services, and potentially allowing for such features as multi-channel high-definition TV broadcasting.

"Intel Capital's intended investment and Intel's accompanying business engagement will enable VMAX to deploy Taiwan's first mobile WiMAX network, intended to be commercially available within the first half of next year," Intel said in a statement.

Unlisted VMAX, with capital of one billion Taiwan dollars, is a joint venture between telecommunications-equipment maker Tecom Co. and local mobile-phone operator VIBO Telecom Inc.

Intel president and CEO Paul Otellini said the US chip maker, through Intel Capital, had also signed an agreement with Taiwan's economic ministry to open a centre to develop software for next-generation mobile devices.

"Intel and Taiwan will continue to collaborate to create growth opportunities for the industry," Otellini said.

Intel said the accords would "extend Taiwan's position as a leading centre for developing and deploying the world's next generation of connected devices and related technologies."

-- Dow Jones Newswires contributed to this story --

© 2008 AFP