There is no denying the fact that Intel Corporation (NASDAQ:INTC) was late in adapting the mobile technology and the chipmaker hasn’t found much success in it until now. However, it doesn’t mean that the company won’t target the world’s fastest growing Smartphone market, China. After its recent partnerships with chip manufacturers in China, the CEO is expecting a wider acceptability of Intel’s architecture over the rival ARM technology.
Intel came under strategic alliance with two Chinese chipmakers, Spreadtrum and Rockchip, to use its technology for the development of chips for low-budget Smartphones and tablets. Both of these companies use the ARM technology offered by ARM Holdings plc (LON:ARM) for chip manufacturing. Brian Krzanich, CEO of Intel Corporation (NASDAQ:INTC), believe that both of these companies would shift to Intel’s technology in the next two to three year, although they are not under legal obligation to do so.
Krzanich believes that the Intel technology will offer an edge against other chipmakers using ARM technology highlighting the high-performance and high-end features of Intel technology. He said, “If you’re a small guy trying to compete, it’s tough to be in that battle.” Both of its partners, Spreadtrum and Rockchip, are working on SoCs (system on chip) development out of which Spreadtrum is expected to come up with one next year.
While talking about the demand in Chinese market, Krzanich said, “We’re not done. China is the fastest growing market in the world.” The company is likely to form more alliances in future.
Earlier, a latest report from Reuters Pe Hub claimed that Intel Corporation (NASDAQ:INTC) has invested $28 million, through its capital arm, in five different Chinese companies involved in the development of smart devices. With this latest investment, the overall investment of the chipmaker is now $100 million in its China Smart Device Innovation Fund that targets the development of an ecosystem of smart device software, hardware, and associated components.
This is the third investment fund from Intel in China after investing $200 million under Intel Capital Technology Fund (2005) and $500 million under Intel Capital Technology fund II (2008).
This article has been written by Prakash Pandey.