4 Reasons for Intel's $1.5 Billion Bet in China

Chip firm to piggyback on China's IC dream
Junko Yoshida, EETimes
9/26/2014 01:20 PM EDT

China's national quest to expand its domestic semiconductor industry suddenly looks more realistic and even winnable now that Intel Corp., the world's largest semiconductor company, has revealed a plan to invest up to RMB 9 billion ($1.5 billion) -- to get a roughly 20% stake in the semiconductor business under Tsinghua UniGroup. The Chinese government-affiliated private equity company controls the Chinese chip designers Spreadtrum Communications and RDA Microelectronics.

China is buying its way into the global semiconductor market. Getting Intel on its side early on in its quest for a global presence will only accelerate the process -- much faster than China doing everything from scratch and competing head on with advanced semiconductor firms.

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