Intel Pivots to Custom Chips to Tap China’s Trillion-Yuan Computing Markets
Listen to the full version
Intel Corp. is doubling down on its localization strategy in China, unveiling plans to offer custom chip solutions tailored to the country’s fast-growing PC and cloud computing markets — sectors the company expects to reach multi-trillion yuan scales.
Speaking Wednesday at the Intel Technology Innovation and Eco-partner Summit in Chongqing, Intel China Chairman Wang Zhicong laid out a vision for adapting the U.S. chipmaker’s offerings through modular configurations designed to meet specific local needs. The shift signals a strategic evolution for the company as it seeks to defend its stake in a market that accounted for nearly 30% of its global revenue last year.
The initiative reflects mounting pressure from China’s push to wean itself off foreign technology amid a broader U.S.-China tech rivalry. Wang Zhicong said that as the company approaches its 40th anniversary in China in 2025, Intel is ready to manufacture chips in a menu-style model if local customers specify their requirements — marking a notable departure from the company’s traditional one-size-fits-all approach.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
- DIGEST HUB
Digest Hub
Back
- Intel is intensifying its localization in China, planning custom chips for the local PC and cloud markets, which generated 29.2% of its 2024 revenue ($15.5 billion).
- The company is shifting to modular, menu-style manufacturing to meet specific Chinese requirements, amid rising domestic competition and regulatory pressures.
- Intel’s leaders emphasized ongoing investment in advanced chip technology and partnerships, as Chinese initiatives push for 50% domestic tech substitution by 2025 and full replacement by 2027.
- Intel Corp.
- Intel Corp. is focusing on a localization strategy in China, offering custom chip solutions for the PC and cloud computing markets. This move responds to China's desire for technological independence and mounting US-China tech rivalry. Intel's China chairman, Wang Zhicong, announced custom chip manufacturing for local needs. Despite geopolitical challenges, China generated $15.5 billion in revenue for Intel in 2024, nearly 30% of its global total.
- Hygon Information Technology
- Hygon Information Technology, a Chinese chipmaker, is mentioned as one of the local companies steadily increasing its capabilities to compete with international giants like Intel and AMD. This is happening within the context of China's "Xinchuang" initiative, which aims to replace foreign technology in critical infrastructure with domestic alternatives.
- HiSilicon
- The article states that HiSilicon is one of the local chipmakers in China that is steadily improving its capabilities. These chipmakers aim to challenge established companies like Intel and AMD as part of China's initiative to replace foreign technology in critical infrastructure.
- Phytium
- Phytium is a local Chinese chipmaker that is steadily increasing its capabilities. It is among the companies challenging Intel and AMD as part of China's initiative to replace foreign technology in critical infrastructure with domestic alternatives.
- AMD
- The article mentions AMD as a competitor to Intel. Along with local Chinese chipmakers like Hygon Information Technology, HiSilicon, and Phytium, AMD is steadily scaling up its capabilities to challenge Intel in the Chinese market. The Xinchuang initiative, aimed at replacing foreign technology, is contributing to this competitive landscape.
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新