Intel expands in China despite sanctions

Within the parameters of US federal restrictions on the Chinese semiconductor market, Intel continues to promote its business in China. The Chinese industry, which made up 27 % of its sales in 2022, is not something it wants to give up.

The recent opening of the Intel Greater Bay Area Innovation Center in the Nanshan city of Shenzhen, the southern Chinese town just across the inside borders from Hong Kong, is an example of how the company is determined to conduct China business as usual, as quietly as possible. WeChat made this announcement at the end of July.

The facility, a collaboration between the Nanshan government and Intel, may grow Intel’s presence in China while advancing the high-tech industrial policy of the city. Artificial intelligence ( AI ), edge computing, server and PC applications, energy efficiency, and other technologies are anticipated to be included in its activities. According to reports, six nearby businesses have already registered.

According to Wang Rui, senior vice president and head of Intel China, the organization will” leverage Intel’s systems and habitat, facilitate the inclusion and growth of emerging sectors in the Greater Bay Area, and help develop the digital business.”

That is to say, for local businesses using its technology, Intel will offer professional support and marketing help. It won’t be expanding China’s manufacturing capacity, which is prohibited for recipients of US CHIPS Act grants.

Pat Gelsinger, the Director of Intel, has already made two visits to China this year. He met with Tsinghua president Li Bin and H3C CEO Yu Yingtao in Beijing during the first quarter of July to examine their organization partnership.

The Xeon Scalable computer, the Habana Gaudi2 deep learning and conclusion computer from Intel, and the new energy-efficient servers from H3C are even based on Intel technologies. Gaudi2 was introduced to China by Intel on July 11 at a media event in Beijing.

Gaudi2 will also be used by Inspur Group’s AI machines, a H3C rival. Gaudi2 is exempt from trade restrictions, but Inspur, an IT company with interests in fog technology, big data, and hypervisor software, is on the Commerce Department’s institution list.

Gelsinger also met with Liu Hongyun, president of xFusion Technologies, to talk about AI technology and energy-saving information center technology. More than 200 Fortune Global 500 companies and other customers in the telecoms, financing, online, state, and various financial sectors are served by xFusion, a site and software provider, which is present in 130 countries and regions worldwide.

CEO Pat Gelsinger of Intel. Featured image: Market Watch.

Gelsinger reportedly spoke with China’s State Administration for Market Regulation as well, but no further information has been made public. The skill of Tower Semiconductor, which was announced in February 2022, is still pending approval from China, according to Intel. The bargain might not be finished until the end of June, according to Intel’s announcement in January 2023. According to reports, August 15 is the ultimate date.

Gelsinger attended the 20th anniversary celebration of the opening of Intel’s IC promotional material and test center in Chengdu prior to these discussions. There were also the provincial government of Sichuan and the secretary of the Chengdu group.

Gelsinger met with Chinese Vice President Han Zheng, Chinese Minister of Commerce Wang Wentao, and Jin Zhuanglong, China’s pastor of business and information technologies, while also attending an Intel conference in Beijing in April. They officially talked about the security of the supply chain, the investment climate in China, and Intel’s plans to grow its operations there.

Local businesses that have joined the Greater Bay Area Innovation Center include Chipsea Technologies, another IC style business, Ugreen, a manufacturer of batteries, USB centers and other products, the Senary Technology Group, which consists of the electronic component distributor and design firm Serarytech.

Senarytech creates audio / video codec SoCs for commercial displays, virtual reality, auto dashboards, and other applications. For what purposes does China design Incident?

Power management, car, customer, and different applications, as well as professional measurement and control.

In Shenzhen, there are also the following partners and clients for Intel:

  • Shenzhen Innovation Technology specializes in industrial and road traffic data, situation applications, and automated control of roadside infrastructure. It develops products, manufactures them, integrates systems in the fields of video detection and analysis.
  • Video insights for safety and security surveillance, according to Shenzhen Extreme Vision Tech. Cutlery, guns, fireworks, and other suspicious objects are found by the Intel Open VINO profound learning conclusion kit examination algorithm.
  • Shenzhen Eii Tech specializes in audio / video technology for Windows office tablet and notebook computers, industrial control, security, medical, education, networking, etc.
  • Shenzhen Decenta Technology: Manufacturer of terminals and top servers for a variety of applications, including retail, online banners, industrial power, and stability systems. Custom creator of embedded components solutions based on X86 and ARM.

One of China’s largest amounts of high-tech businesses can be found in Shenzhen, including a number of start-ups, telecoms equipment manufacturers Huawei and ZTE, the technology and entertainment business Tencent, and the Southern University of Science and Technology in China. There are about 13 million people living there.

Nine places in the province of Guangdong, including Shenzhen, the mill town of Dongguan, and the capital city, are part of the Greater Bay Area, which also includes Hong Kong and Macau. They encircle the river of the Pearl River. Greater Bay Area has a population of more than 86 million people, and its GDP is significantly higher than that of South Korea — more than US$ 1.8 trillion. It plays a significant role in Intel’s presence in China.

Wang Rui. Iijwei picture

Wang Rui earned a PhD in architecture and nbsp at Columbia University after graduating from the South China University of Technology’s Electronics Engineering School in Guangzhou. She worked at electronic design automation ( EDA ) company Cadence and Intel rival AMD before joining Intel in 1994. In the current political climate, it would be very challenging, if not impossible, for a Chinese student to do such an occupation.

Wang spoke at the Baidu World 2020 technology conference in 2020 while serving as vice president of Intel’s Sales & amp, Marketing Group, and China country manager. At the conference, Intel and Alibaba announced their joint efforts in AI, 5G telecom, data centers, cloud computing infrastructure:

The most crucial factor in creating an business ecology in China, she said, is to firmly establish roots in the local business and its users’ needs. With the full-speed construction of” new equipment” and 5G, China has moved into the phase of accelerated industrial web development. In order for technology to improve everyone’s life, Intel and Baidu will work closely together to develop endless possibilities for the future through ongoing advancement.

Since 1985, Intel has been based in China. It’s likely to last longer than the existing anti-China panic in Washington, DC.

@ ScottFo83517667 is the author’s Twitter account.