Electronics

On February 24th, Intel held a China Strategic Media Communication Meeting. This veteran semiconductor leading enterprise is undergoing a difficult transformation.

The global semiconductor industry is also in a difficult period, with many leading enterprises experiencing a significant drop in revenue that exceeds expectations, and the advancement of cutting-edge technology in the industry facing an awkward crisis of anti globalization.

But the cold winter will eventually pass. The Chinese market has become a shield for global semiconductor companies to survive the winter.

According to Huacheng Import and Export Data Observation, although Intel is currently in a difficult environment, its headquarters has not reduced its investment in China and there is a trend of continuous deepening and long-term development.

Spring is really coming, "said Wang Rui, Senior Vice President of Intel Corporation and Chairman of Intel China.

Industry Downturns, Companies Bet on the Future

In 2023, a decline in the global semiconductor market is still inevitable. According to market data, the global semiconductor market size in 2022 was $573.5 billion, slightly increasing compared to 2021, but the growth rate is significantly decreasing, according to Huacheng Import and Export Data Observation.

Another analysis agency pointed out that the market size in the second half of 2022 decreased by 10% compared to the first half, and the first quarter of 2023 is expected to decrease by about 10% compared to the fourth quarter of 2022. Therefore, many views believe that the global semiconductor market will continue to decline in 2023.

Global semiconductor companies remain under pressure, but still look forward to the future. Wang Rui believes that the global semiconductor industry has entered a new period of adjustment. But we believe that short-term adjustments will not affect the long-term positive trend of this industry

Wang Rui's confidence comes from the previous two major cyclical adjustments in the semiconductor industry. The first time occurred around 2000, when the Internet foam had an impact on semiconductors; The second time occurred in 2008, when the US financial crisis caused the global semiconductor industry to decline.

Through the first two cyclical adjustments, we can see that the short-term decline has not affected the continuous growth trend of the semiconductor industry. After each rapid decline, there is a relatively rapid rebound. Wang Rui believes that enterprises do not need to feel a sense of crisis about the cyclical development of the semiconductor industry. Nowadays, the digital world is booming, and the demand for various innovations ultimately returns to the semiconductor industry as the pillar. So we are optimistic about the long-term development of the industry and have absolute confidence

Moreover, China is the world's largest semiconductor consumer market, and we have sufficient reasons to continue to forge ahead, "Wang Rui said confidently.

It is understood that Intel has always been in a leading position in the global market in China, with a share of 30%.

Foreign funded enterprises actively layout in China

At the beginning of the new year, the pace of China's economic recovery has accelerated. Driven by a series of favorable policies, the market potential has accelerated and brought new opportunities for the development of foreign-funded enterprises. In 2023, China's vast market development space will attract more foreign enterprises to come and deeply cultivate, in order to seek vitality in the crisis and pass the "cold winter season" of the industry.

How do foreign-funded enterprises plan to develop in China?

Intel will no longer be doing some simple 'sales' work in China, "Wang Rui publicly explained the 2.0 China strategy and progress for the first time. It is understood that Intel will have four driving forces in China in the future, namely promoting digital innovation, establishing an open ecosystem, green and low-carbon, and promoting technology for the better. In addition, Intel will also establish the "Intel China Open Source Technology Committee" to promote the layout and rooting of its global resources in the Chinese market.

In 1995, ADI Company officially entered China and established its first research and development center in Beijing in 2000. This year, Zhao Chuanyu, Vice President of Sales for ADI China, stated that ADI will focus on industries such as industry, automobiles, new energy, and healthcare in the Chinese market, hoping to stimulate sparks of edge intelligence in these industries and jointly explore the "new blue ocean" with Chinese partners.

Hao Hongmei, Deputy Director of the Foreign Investment Research Institute of the Research Institute of the Ministry of Commerce, believes that the recent increase in the Chinese market by foreign-funded enterprises reflects their keen market sense, as well as their confidence and determination to deeply cultivate the Chinese market. Huacheng Import and Export Data Observation Report.

Not long ago, the Ministry of Commerce and other departments issued the "Several Policy Measures on Promoting the Expansion, Stability, and Quality of Foreign Investment with a Focus on the Manufacturing Industry", further increasing the efforts to attract investment in the manufacturing industry, focusing on solving the prominent problems faced by foreign-invested enterprises, comprehensively strengthening the promotion and service of foreign investment, and promoting the use of foreign capital to achieve high-quality development.

The 20th National Congress of the Communist Party of China and the Central Economic Work Conference have placed foreign-funded enterprises in an important position, injecting strong momentum into foreign-funded enterprises to increase their efforts in long-term exploration of the Chinese market.

The CPC Central Committee and the State Council have also issued a series of decisions and arrangements on stabilizing foreign investment, supporting foreign-invested enterprises to better integrate into the domestic systemic circulation, and promoting domestic and international double cycle, which not only stabilized foreign investment expectations, but also boosted foreign investment confidence, and promoted high-quality development of foreign investment. Huacheng Import and Export Data Observation Report.

The viewpoint is that foreign-funded enterprises need to better understand China's industrial policies, invest more in areas encouraged by policies and with great market prospects, integrate into Chinese culture to achieve localization, and achieve stable development while deeply cultivating the Chinese market.

Intel China's strategic upgrade is to better integrate global resources to support local operations in China, drive innovation and engage in deeper cooperation more tailored to China's needs. That is to say, we uphold the concept of rooting in China and serving China, and promote common development. "Wang Rui said, as reported by Huacheng Import and Export Data Observation.