Intel Corporation (NASDAQ:INTC) Expects To Partner with China

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By Stefan Larson on November 12, 2014 Company

Brain Krzanich, the chief executor officer of the Intel Corporation (NASDAQ:INTC) expects their new Chinese partners to abandon their current ARM technology and shift to Intel for all its chip making needs. Currently China is using Britain’s ARM Holding Plc licensed technology. According to Krzanich, the total shift is only a few short years away.

On May 16, 2013, Paul S. Otellini turned over the CEO position to Brain Krzanich the chief operating officer (COO) of Intel Corporation (NASDAQ:INTC), making him the sixth CEO of the company. While in the role of COO, Mr. Krzanich was responsible for leading more than 50,000 employees including the Intel’s China strategy team.

Intel Corporation (NASDAQ:INTC), the United States based semiconductor corporation, is known more for the chips that are used in personal computer and has struggled to gain traction in the growing market of smartphone and tablets.

A deal was struck with Rockchips and Spreadtrum Communications to use their technology for low cost tablets and smartphone to meet the need of the growing market emerging from China. This deal was made through the Tsinghua Unigroup, which is a government affiliated firm that owns both of the chipmakers. Under the guidelines of the agreement, Intel Corporation (NASDAQ:INTC) will not place any restrictions on the chipmakers. This landmark partnership would provide Intel with more of an advantage in the Chinese mobile chip market.

Spreadtrum, which Intel Corporation (NASDAQ:INTC) acquired 20% of its parent company for $1.5 billion, is working with Rockchip to make the Intel branded tablet, SoC, which is expected to be released in the next 12 months. Brain Krzanich had mentioned that both Spreadtrum and Rockchip are small companies which is why they will be working together as individually they do not have to the sufficient resources to manufacturer the chip.

The CEO of Intel Corporation (NASDAQ:INTC) says that the technology of the company will assist players to stand out in the growing market. Qualcomm Inc., their main competition at the moment, will be offering high end chips and MediaTek, a company based in Taiwan, is currently flooding the Chinese market with low end chips that are also based on ARM technology.

Intel Corporation (NASDAQ:INTC) entered the mobile bandwagon late and is focusing their technology on smartphones and tablets. The demand for smartphone, in the United States, is saturated which is why so many manufacturers are looking toward China, where the demand for less expensive smartphone ($150 and under) are in demand.

Intel Corporation (NASDAQ:INTC) was founded in 1968 and is an American based multinational company that has its headquarters in California. Intel Corporation (NASDAQ:INTC) is one of the largest and well known makers of semiconductor chips. They are the inventors of the processor, x86 series, that are still found today in many personal computers.

Intel Corporation (NASDAQ:INTC) opened the market today at 33.23 and at 10:40 am eastern daylight time, it is holding at 33.22. The 52 outlook ranges between 23.40 and 35.56. The market capital is 160.62B with 67% being institutional ownership.