Intel (INTC) has signed a memorandum of understanding with the Hubei Provincial Government to jointly promote a new generation of WiMax development, and the parties will also cooperate to set up a WiMax industry base in Wuhan, capital of Hubei Province.

According to the MOU, Intel will establish a WiMax industry base in Wuhan, and Airway Communication Group, a national operation platform that covers 16 provinces and cities of China, will help promote and push forward the informationization of Hubei Province.

Local media reports that Intel has invested RMB700 million into the project, but the company has not made any public comment on this.

Previously, Intel had reportedly wanted to set up WiMax businesses in Chengdu and Dalian without the help of China's Ministry of Information Industry or local government agencies, but it failed to do so.