Microprocessor vendor Intel Corp has enjoyed great success in China by partnering with domestic computer makers such as Lenovo, Founder and Haier.
The strategy has helped Intel and its partners win a major market share from foreign rivals during the past 10 years.
But as the global economic downturn has slowed the personal computer market in China, the world's largest chip maker is now hoping to profit more from the Chinese government's economic stimulus package.
Intel reported revenues of $8 billion in the second quarter of this year, down $1.4 billion from the same period last year.
Intel executives said the US-based company will expand its strength outside the personal computer arena in China and hopes to profit from the government's stimulus programs impacting railroad construction, rural improvements and healthcare reform.
Intel said these programs, which need huge investments in advanced technology, will promote the use of hi-tech products such as computers, servers and mobile devices for the world's largest population.
"It is the first time in 20 years that we plan to integrate our resources in China to fuel the country's long-term development," said Ian Yang, the president of Intel China.
Where China goes
"The future development of Intel China will focus on where China goes. That's where we will have a bigger opportunity," he said.