Boston, MA 10/14/2014 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) would stand to benefit from China’s rapidly growing mobile chip market in the coming years. Its agreement with the domestic-based Tsinghua provided an additional way of entering into the largest chip market in the world.
What is more important is that the Chinese establishment wanted some trusted brand to take on the likes of Samsung and QUALCOMM, Inc. (NASDAQ:QCOM). This should help Intel in more than one way to address the mobile segment, where it was struggling.
As a policy, China has been clamoring for a semiconductor design and manufacturing hub for over a decade, Reuters reported. However, the activities started accelerating following the cross-border cooperation and merger deals in the last one year.
For Intel Corporation (NASDAQ:INTC), it would be investing $1.5 billion in chip segment. It could turn into a big potential since China would occupy the number one slot in the smartphone category anytime now. It would have also helped Intel amend its earlier slowness in entering the mobile segment.
Intel Corporation (NASDAQ:INTC) was slow to realize the impact of growing mobile segment initially. They have woken up to the reality very late allowing the field open to its rivals. From then, it was struggling to have some grip.
In 2013, China’s chip industry delivered revenue of $40.98 billion, according to the estimation of the China Semiconductor Industry Association. Its demand for chips from the domestic circuit was 917 billion yuan that indicated over 50% of the consumption of Global semiconductor industry.
According to Deng Zhonghan, National People’s Congress and Chinese Academy of Engineering member, China would see $210 billion of annual chip imports. Similarly, in June, the State Council provided its most complete procedure for the semiconductor industry development. According to its revenue targets for 2015 and 2020, chip revenue would grow at a faster rate of 20% annual clip to touch 350 billion yuan by the end of the year 2020.
The recent agreement by Intel extends its beachhead, which was the largest battleground as far as the smartphone industry was concerned. It should also help boost Intel’s multi-year steps to catch up with QUALCOMM, Inc. (NASDAQ:QCOM), which was a leading mobile chip maker. In a nutshell, it is an opportunity to earn its slice of pounds from the mobile chip market.