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Intel CEO Patrick Gelsinger Expands Presence in China Amid US-China Tech War

Updated: Jan 8

Intel CEO Patrick Gelsinger concludes second visit to China in three months, strengthening ties with Chinese IT companies and emphasizing China's significance as a key market for Intel.

Credits: Shutterstock Images

Intel CEO Patrick Gelsinger concluded his second visit to China in three months, demonstrating the company's commitment to the Chinese market despite the escalating US-China tech war. During his trip, Gelsinger visited prominent Chinese IT companies and acknowledged the critical role of Chengdu in Intel's global supply chain.

Gelsinger's itinerary included a visit to New H3C Group, where he met with Tsinghua Union Group's Chairman, Li Bin and H3C CEO Yu Yingtao. H3C announced their intention to utilise Intel's Gaudi2 processors in their latest server products. Gelsinger also held discussions with xFusion Technologies' Chairman, Liu Hongyun, focusing on collaboration in green data center innovation and AI computing power.

Kicking off his trip in Chengdu, Gelsinger celebrated Intel's 20th anniversary of operations in the city at their chip packaging and test plant. The provincial governor of Sichuan, Huang Qiang and the Chengdu party secretary, Shi Xiaolin, warmly received Gelsinger, who praised Chengdu's business-friendly environment and its contribution to Intel's stable growth and enhanced confidence in expanding within the region.

Intel did not disclose the full details of Gelsinger's itinerary in China. Coinciding with his visit, Intel launched the Gaudi 2 processor, specifically designed for AI deep-learning applications, which is not subject to US export restrictions. The processor will be utilised by Inspur, China's leading AI server manufacturer, in their new NF5698G7 AI server.

Highlighting the significance of the Chinese market, Gelsinger's previous visit to China in April emphasised Intel's longstanding presence in the country since 1986. Despite ongoing export restrictions imposed by the Biden administration, China continues to be a crucial market for US chip makers, including Intel, which generates over a quarter of its revenues from China.

Intel faces pressure to improve its financial performance, evident from a 36% YoY decline in revenue to US$11.7 billion and a net loss of US$2.8 billion in the first quarter of this year. Additionally, the acquisition of Israel-based wafer foundry Tower Semiconductor by Intel is still pending approval from Chinese regulators, possibly linked to Beijing's response to US sanctions.

No reports emerged regarding Gelsinger's meeting with China's antitrust regulator, the State Administration for Market Regulation, during his recent trip.

  • Intel CEO Patrick Gelsinger completes second visit to China within three months, reinforcing commitment to the Chinese market.

  • Gelsinger engages with New H3C Group and xFusion Technologies, discussing partnerships and collaboration in server products, data center innovation and AI computing power.

  • Chengdu's importance in Intel's global supply chain acknowledged by Gelsinger, highlighting favorable business conditions and paving the way for company expansion.

  • Intel launches Gaudi 2 processor for AI applications, partnering with Inspur for its new AI server.

Source: SCMP

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