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Intel Corporation， the world’s largest chipmaker， is showing growing interest in investment in China， with the latest plan to splurge a massive 10 billion yuan， or$1.6 billion in the next 15 years， to upgrade its chip plant in the interior city of Chengdu and introduce its latest advanced test technology into the country.
The chipmaker is hoping to improve its business strategies for computing and communications market segments in China， especially those in the mobile sector， including tablets， smart phones， the Internet of Things （IoT） and wearable equipment， according to a press release from the international giant.
It is noteworthy that besides Intel， many other semiconductor giants， including Samsung， SK Hynix， and Texas Instruments， are also ramping up investment in the Chinese market.
In June 2014， in a bid to realize the leaping development of the domestic semiconductor industry， the State Council of China promulgated the Outline of National Integrated Circuit Industry Development， with a proposal to establish national industrial investment funds.
In the face of a more intense competition from Chinese enterprises in the huge market， those international giants are rushing to expand their presences in the country.
Ramped-up investment in China
“The investment is a significant move for Intel to expand its assembly and test business and it is also our largest investment in Chengdu plant，” says William Holt， executive vice president and general manager of the Technology and Manufacturing Group at Intel.
“The upgrade in Chengdu plant will help China’s ICT industry make continuous innovation and boost regional economic development，” adds Holt.
According to estimates from research firm Gartner， compared with a growth of 5.7% in the whole semiconductor market， IC devices associated the IoT with will see a whopping rise of 36.2% in 2015.
Gartner says the IC devices featured with processing function will become the biggest contributor to the IoT industry earnings， with $7.58 billion in revenue in 2015， followed by sensors which are expected to see a rise of 47.5% in revenue over the period.
Under Intel’s plan， the upgrade in Chengdu plant will give priority to the layout of the IoT and wearable products.
“The introduction of our latest technology will significantly expand the test coverage， improve product classification， help make more reliable prediction and more precise positioning of encapsulation， and optimize the adaptive process. The technology enables the plant to test various Intel products and it also can be applied to many other kinds of products，” says spokesman for the chipmaker. Just two months earlier before the announcement of the update in Chengdu plant， together with Tsinghua Unigroup， an operating subsidiary of stateowned Tsinghua Holdings Co.， Ltd.， the chipmaker said it would invest up to $1.5 billion in Spreadtrum Communications Inc. and RDA Microelectronics Inc.， both controlled Chinese mobile-chip designers by Tsinghua Holdings， aiming at a bigger bite of China’s smartphone market.
Under the plan， Intel will acquire a 20% stake at Spreadtrum Communications and RDA Microelectronics. In addition to the big investment， the international chip giant will introduce more cutting-edge technologies to the two chip designers.
Intel wants to increase the use of its products inside made-in-China mobiles and tablets through the capital and technology investments in Spreadtrum Communications and RDA Microelectronics which hold considerable market shares in China.
With the cooperation of Tsinghua Unigroup， Intel will gain enough traction to go further in the country.
Besides， believing that the $1.6 billion investment in Chengdu plant will not be the last major announcement from Intel， some experts its next move is to update its plant located in the coastal city of Dalian in China’s northeastern Liaoning Province， which perhaps involves investment of another$1 billion.
According to statements by several Intel executives in many occasions， the chipmaker’s U.S.-based headquarters is readjusting the positioning of the Chinese market.
At the time when China’s policy makers decide to promote the country’s semiconductor industry， it is a relatively smart move for Intel to place more big bets in the country.
The chipmaker is hoping to improve its business strategies for computing and communications market segments in China， especially those in the mobile sector， including tablets， smart phones， the Internet of Things （IoT） and wearable equipment， according to a press release from the international giant.
It is noteworthy that besides Intel， many other semiconductor giants， including Samsung， SK Hynix， and Texas Instruments， are also ramping up investment in the Chinese market.
In June 2014， in a bid to realize the leaping development of the domestic semiconductor industry， the State Council of China promulgated the Outline of National Integrated Circuit Industry Development， with a proposal to establish national industrial investment funds.
In the face of a more intense competition from Chinese enterprises in the huge market， those international giants are rushing to expand their presences in the country.
Ramped-up investment in China
“The investment is a significant move for Intel to expand its assembly and test business and it is also our largest investment in Chengdu plant，” says William Holt， executive vice president and general manager of the Technology and Manufacturing Group at Intel.
“The upgrade in Chengdu plant will help China’s ICT industry make continuous innovation and boost regional economic development，” adds Holt.
According to estimates from research firm Gartner， compared with a growth of 5.7% in the whole semiconductor market， IC devices associated the IoT with will see a whopping rise of 36.2% in 2015.
Gartner says the IC devices featured with processing function will become the biggest contributor to the IoT industry earnings， with $7.58 billion in revenue in 2015， followed by sensors which are expected to see a rise of 47.5% in revenue over the period.
Under Intel’s plan， the upgrade in Chengdu plant will give priority to the layout of the IoT and wearable products.
“The introduction of our latest technology will significantly expand the test coverage， improve product classification， help make more reliable prediction and more precise positioning of encapsulation， and optimize the adaptive process. The technology enables the plant to test various Intel products and it also can be applied to many other kinds of products，” says spokesman for the chipmaker. Just two months earlier before the announcement of the update in Chengdu plant， together with Tsinghua Unigroup， an operating subsidiary of stateowned Tsinghua Holdings Co.， Ltd.， the chipmaker said it would invest up to $1.5 billion in Spreadtrum Communications Inc. and RDA Microelectronics Inc.， both controlled Chinese mobile-chip designers by Tsinghua Holdings， aiming at a bigger bite of China’s smartphone market.
Under the plan， Intel will acquire a 20% stake at Spreadtrum Communications and RDA Microelectronics. In addition to the big investment， the international chip giant will introduce more cutting-edge technologies to the two chip designers.
Intel wants to increase the use of its products inside made-in-China mobiles and tablets through the capital and technology investments in Spreadtrum Communications and RDA Microelectronics which hold considerable market shares in China.
With the cooperation of Tsinghua Unigroup， Intel will gain enough traction to go further in the country.
Besides， believing that the $1.6 billion investment in Chengdu plant will not be the last major announcement from Intel， some experts its next move is to update its plant located in the coastal city of Dalian in China’s northeastern Liaoning Province， which perhaps involves investment of another$1 billion.
According to statements by several Intel executives in many occasions， the chipmaker’s U.S.-based headquarters is readjusting the positioning of the Chinese market.
At the time when China’s policy makers decide to promote the country’s semiconductor industry， it is a relatively smart move for Intel to place more big bets in the country.