In an attempt to breach the Chinese chip market, Intel Corporation (NASDAQ:INTC) has agreed to invest $1.5 billion in Tsinghua Unigroup Ltd. owner of Spreadtrum Communications Inc. and RDA Microelectronics Inc.
Intel Corporation (NASDAQ:INTC) will own 20% stake in Tsinghua Unigroup Ltd. and it shows Intel’s desperation to move into the Smartphone chip market and compete against its rival QUALCOMM, Inc. (NASDAQ:QCOM). Brian Krzanich, CEO of Intel Corporation, said,
“China is now the largest consumption market for smartphones and has the largest number of Internet users in the world. These agreements with Tsinghua Unigroup underscore Intel’s 29-year-long history of investing in and working in China.”
Intel Corporation (NASDAQ:INTC) would start manufacturing products with Spreadtrum and offer the products to its domestic phone-manufacturing clients starting near the half of 2015. Americo Lemos, Intel VP, said that the company is spending the money for a long-term partnership, which is likely to open new markets with the expansion of Chinese phone makers in the International community.
Looking at the past few months, it is quite obvious that Intel Corporation (NASDAQ:INTC) is doing everything it can to increase its reach in the world’s most populous mobile market. Earlier, the company announced a deal with Fuzhou Rockchip Electronics Co. for preparing a new mobile device and the companies would work to produce new quad-core processor along with an integrated modem. These devices are likely to be available by the start of 2015.
After a close analysis of previous investor meetings, it might surface up that Intel Corporation (NASDAQ:INTC) is rather aiming for the foundry role in chipmakers to boost its reach in the International Smartphone market. Intel is getting fair amount of success as well while its competitors such as QUALCOMM, Inc. (NASDAQ:QCOM) are under the lens of antitrust investigation lead by the National Development and Reform Commission.
This article has been written by Prakash Pandey.