Intel will set up a technology centre in Beijing with local computer maker Legend Group to research and develop secure computing and next-generation internet technologies for the Chinese market.
The Intel-Lenovo Technology Advancement Centre features Legend's Lenovo hardware brand name, and will focus on the research and design of products for the convergence of computing and communications such as mobile PCs.
It will also look at platform standards and computing platforms for digital homes and offices.
News of the Beijing research centre comes one day after Intel announced plans to construct a semiconductor assembly and testing plant in China's western Sichuan Providence.
The chip maker is spending $200m (£126m) on the factory in Chengdu, which is expected to employ 675 people.
Construction of the Chengdu factory is slated for the first half of 2004 and Intel said it also anticipated a second-phase investment of $175m with further job creation.
Intel said that the factory and research centre reflects a growing demand for Intel products in Asia.
The chip maker also has assembly, testing and customer support facilities in other locations in China.
Scarlett Pruitt writes for IDG News Service