On November 26, Intel Connection China, hosted in Chengdu, emerged as the company's largest technology ecosystem event to date, featuring participation from major partners including Lenovo, HP, Microsoft, and Montage Technology. This gathering came amid security concerns in China regarding Intel's CPUs and potential investigations.
On the same day, the US government finalized Intel's semiconductor subsidies under the CHIPS Act. While the amount was reduced from the initially announced US$8.5 billion, a US official confirmed that the funding would be distributed in phases, with Intel set to receive at least US$1 billion in 2024.
According to reports from TMT Post and Chengdu Economic Daily, Intel China's Senior Vice President and Chair Rui Wang emphasized the company's unwavering commitment during challenging times at the Chengdu ecosystem conference. This statement followed Wang's recent meeting with senior Chinese officials alongside Intel's Senior Vice President for government relations.
While specifics regarding China's product concerns remained unaddressed, Intel appears to be prioritizing localization in its China strategy. This conference marked Intel's first major public statement following recent challenges in the region.
Wang highlighted China's significance, noting that the market represents over one-quarter of Intel's global revenue. Looking ahead, generative AI is projected to contribute US$7 trillion to the global economy by 2030, with China expected to account for US$2 trillion—nearly one-third of the total. This projection underscores China's pivotal role in the global digital economy.
In a previous development this October, Intel announced plans to expand its Chengdu packaging and testing facility for server chip services and establish a customer solutions center to strengthen support for Chinese clients. These investments reflect China's continued importance to Intel across both client PC and server markets.
