4 Reasons for Intel's $1.5 Billion Bet in China

Chip firm to piggyback on China's IC dream
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tech4people
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Is this just Intels Way of Cracking the Smartphone Market?
tech4people   9/30/2014 4:20:05 PM
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Junko,

Do you feel that this is just the way Intel hopes to crack the Mobile Market Decisively(which is now dominated by ARM today)?

I have't seen the Full Details of the Deal but if it means that Intel will have to give up some of their Propreitary IP for access to the Chinese market(won't be the first time);It maybe too High a Price to pay?

I can see and Understand why Intel is so Desperate.Not sure if Partnering with the Chinese is the Best option.

 

tech4people
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Re: Intel's investment in China
tech4people   9/30/2014 4:15:04 PM
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Nimantha,

On the Contrary most Senior Business Executives and Professionals are LEAVING China today-www.bbc.com/capital/story/20140321-expat-exodus-from-beijing

Previously they were just moving to Hong Kong but With the Current Massive Strife happening in Hong Kong today-www.bbc.com/news/world-asia-china-29405195

Thousands of Hong Kong Citizens are on the Street blocking all traffic today.

The Chinese Story is'nt all a Bed of Roses as you see currently.

 

tech4people
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Re: China is a big deal
tech4people   9/30/2014 4:04:43 PM
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Hospice,

That is a very fair and accurate comment to make.

China is no longer the home of Cheap Labor today-Thats happening in Ethiopia,Cambodia and Vietnam currently.

 

 

tech4people
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Re: China is a big deal
tech4people   9/30/2014 4:03:05 PM
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Alex,

China remains a Big Potential Market (where a lot of Companies are chasing in the Hopes of Catching that Elusive Growth that is missing in the US and Europe today).

The issue is that they don't really have a big Young Population(thanks to their One Child Rule-Its Ageing Super-fast today).

This has pushed wages up really fast(at Double Digit Pace) for most Workers(especially factory shop employees).

Consequently,a lot of the Lower end Manufacturing is now moving elsewhere-Vietnam,Cambodia and Ethiopia are favorite destinations.

There is also a Big Jobs crisis in China currently-Too many people with Degrees are chasing too few Office Jobs.

Its a serious issue,Coupled with the fact that The Real Estate and Coal Mining Industry is in a massive Recession currently does'nt augur well for the near future.

Lot of complicated variables in place when it comes to Piecing The China Puzzle today.

 

nimantha.d
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Re: Intel's investment in China
nimantha.d   9/30/2014 11:35:26 AM
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@Hospice: Indeed, china is the business hub these days.

Hospice_Houngbo
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Re: Intel's investment in China
Hospice_Houngbo   9/30/2014 9:59:27 AM
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@Jacob: Other leading semiconductor manufacturers will also try to reinforce their position in the Chinese market. China has become a key region for most businesses to thrive.

Hospice_Houngbo
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Re: China is a big deal
Hospice_Houngbo   9/30/2014 9:39:37 AM
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"they have cheap labor and they're attracting a lot of investors."

By investing $1.5 billion in two Chinese chip firms, Intel intends to boost its presence in the country's booming mobile phone market. Not primary to take advantage of China cheap labour. Cheap labour in China is already fading as wages keep soaring.

Jacob
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Intel's investment in China
Jacob   9/30/2014 3:16:12 AM
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"China's national quest to expand its domestic semiconductor industry suddenly looks more realistic and even winnable now that Intel Corp., the world's largest semiconductor company, has revealed a plan to invest up to RMB 9 billion ($1.5 billion) -- to get a roughly 20% stake in the semiconductor business under Tsinghua UniGroup."

Junko, it seems that the government initiatives are grooming in a fruitful way. The huge investment from Intel can also attract other similar players like ARM, AMD etc. Is it a fab unit or something else?

t.alex
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China is a big deal
t.alex   9/30/2014 12:55:29 AM
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China is without has been a big market at the moment and long term in the future. They not only have huge young population they also have big land and human resources. In my opinion, Intel made a right move entering the market since they have cheap labor and they're attracting a lot of investors.



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