Intel sees plenty of opportunities for semiconductor start-ups and is spearheading an initiative to loan them huge wodges of cash.

According to EE Times Keith Larson, a vice president at Intel Capital is organising the Invest in America Alliance. While this might seem odd for an outfit which spends shedloads of cash in Fabs in Israel and the Far East, apparently Larson sees great hopes in the Land of the Free.

Intel Capital is one of 25 VCs in the new alliance that said as a group they will invest $3.5 billion in startups over the next two years, including $200 million from a new Intel Capital Invest in America Technology Fund.

Larson said that there is shedloads of VC money sitting on the sidelines and not getting invested. He added that start-ups could qualify for cash if they can come up with interesting ways drive cost out of the products in test, packaging and critical parts of process innovations such as patterning and polishing. In the memory chip area Intel is looking at investing in full wafer test, chip stacking solid-state lighting, smart grids, and educational PCs.

Alas they are not interested in funding our device to stop a beer mat sticking to the bottom of a pint glass. Guess we will have to take our innovation elsewhere.