Outlook News Weekly: Intel China's Way to Success

Intel firmly and completely cooperated with China's industry, and accompanied each other and grew together. It only achieved a win-win situation today. It wasn’t Deng Xiaoping’s famous “computer to start from the doll” in 1984. Intel may not In 1985, he "hurriedly" entered China.

After all, as a new company that was founded in 1968, Intel’s international experience is less than those of “a hundred years old”. However, in the face of the huge temptation of the Chinese market, Intel still did not hesitate to come to China.

Like many multinational corporations, Intel also suffered from "unfavorable" in its just entering China. In the nearly 10 years since 1985, since China's market environment and user needs are not well understood, it is not clear how to establish a long-term Chinese strategy. Intel's development in China has always been in the path of exploration.

With the accelerating pace of China's accession to the WTO, Intel has gradually found its development strategy in China. Since 1995, Intel has entered the starting stage in China. During this period, the most important achievement is to work with many partners and firmly seize the opportunity of computer popularization in the Chinese market until China is built into the world's largest PC market.

What really pushes Intel to become rooted and integrated into China is the tremendous changes in China since the accession to the WTO.

“Ten years after joining the WTO, Intel accelerated its development in China and used the mechanisms and conditions provided by the WTO to complete the overall layout of R&D, production and sales in China. Today, Intel’s total investment in China has reached US$4.7 billion, and China has become The world’s largest computer consumer market is a regional market where Intel has the largest resources, the most complete institutional setup, and the entire industry chain layout, and reports directly to the headquarters independently of the United States.26 This was Intel’s establishment of a small service in China 26 years ago. I can't imagine it."

In an interview with the "Outlook" Newsweek, Jun Jun, executive director of Intel China, said that it is Intel who has completely and thoroughly cooperated with China's industries, and has been accompanied by each other to grow together. This has led to a win-win situation today.

"This is not a good expectation of Intel, but a juxtaposition of history." He said, "I believe that China will move from a global production center to a center of innovation. Under this trend, China will become The important global market that integrates manufacturing, innovation and consumption is just around the corner."

Following the National Development Strategy At the end of October 2010, Intel officially started production of the first wafer fab in Asia, the Dalian chip factory in China. The chip factory is Intel's first wafer factory built in 18 years since it established the F10 fab in Ireland. It is Intel’s eighth 300mm fab in the world and Intel’s first in Asia. Wafer manufacturing plant.

This factory, with a total investment of US$2.5 billion, is an important part of Intel’s strategic layout. However, shortly after the factory broke ground in the second half of 2007, the unexpected financial crisis swept across the globe. According to the traditional view, enterprises in the crisis must use “cash as the king” to hold cash in their hands to deal with possible accidents. As a result, the outside world has seen whether Intel will delay or even reduce the concern of investing in factories in Dalian.

In this case, Intel responded to all suspicions with practical actions: not only did it not reduce its investment in Dalian, but also decided to increase its investment in Chengdu factories and its investment in R&D continued to increase.

"Because our investments are closely linked to China's development strategy, we believe that such investments will be successful." When the reporter asked why Intel is so "uniquely independent," Go Jun gave such a Reply.

Unlike many counterparts of foreign companies, there is often a special arrangement on the schedule of senior executives of Intel China companies to meet and study China’s major policies and policies.

Last year, following the introduction of the National 12th Five-Year Plan Consultation Draft, the Intel China Steering Committee conducted several in-depth discussions, one of which was the invitation of some international consultants who had special research on the “Twelfth Five-Year Plan” to fully introduce the Committee. Interpretation of the 12th Five-Year Plan.

Perhaps the outside world is not sure why a multinational company will pay so much attention to China’s policy changes.

"Because this is not only related to the direction of China's macro economy and the direction of society, it also affects the development of Intel in China." Ge Jun told the correspondent that after the reform and opening up, especially since joining the WTO, China's economy has been rapid. The growing perfection of the market and the market environment have provided tremendous opportunities for the development of many multinational companies. Therefore, how to translate these opportunities into actual performance becomes a question that every multinational company must answer.

“More and more multinational corporations are realizing that to succeed in China, we must understand the direction of development of national policies. We must match the development strategy of a company with China’s national strategy. That means finding a win-win situation. Highlights.” He emphasized that many 26 years of Intel’s entry into China’s strategic decisions have been followed by the Chinese government’s major national strategic decisions.

For the three major strategic layouts after Intel’s entry into China—Shanghai R&D Center in Asia Pacific, Chengdu chip packaging and testing, and Dalian wafer fab, the comments given by Ge Jun are Shanghai’s industrial upgrading, western development, and rejuvenation of the Northeast Old Industrial Base. These three regional development strategies.

Perhaps for the same reason, Ge Jun was very excited after carefully analyzing the country's "12th Five-Year Plan."

"Because at least one-third of the key directions are exactly the same as what we want to do, specific deployments such as triple play, Internet of Things, cloud computing, and informatization drive industrialization are great opportunities for Intel." The reporter mentioned that, for example, the use of IT technology to enhance the company's core competitiveness and industrial upgrading, Intel as the world's most advanced manufacturing companies, is very experienced; for example, the country cultivating strategic emerging industries, the strategy of rejuvenating the country through science and education and talent, green environmental protection , energy conservation and emission reduction, organization of all parties to promote social management innovation, and so on, many of the content and Intel's recent development strategy focus, such as education innovation, public welfare innovation, environmental innovation and SME innovation coincide.

Co-growth can be a win-win situation Although the status on the Chinese market today is unmoved, Intel’s policy makers did not achieve a good performance when they entered China, when they entered China, and entered China. Unified understanding.

In Ge Jun’s view, the lack of confidence in the current year did not mean that we could not see the huge potential of the Chinese market. It was because the maturity of the industry in China was actually too low.

For Intel at the time, to root its own technology in China, there are two pieces of soil to choose from, one is the Chinese market and the other is the Chinese industry.

“The choice between the two is both a strategic choice and a strategic choice because it affects different modes of cooperation, which in turn determine our future in China.” Said Ge Jun, if only based on the Chinese market, At the time, China’s situation was both straightforward and practical, because it was only necessary to continuously input the chip products directly into the Chinese market. However, Intel’s ultimate strategic focus was still to locate cooperation with China’s industries.

But soon, Intel found it difficult to achieve this goal - although most domestic PC vendors believe that Intel's technology is very good and powerful, it is too advanced. Domestic manufacturers are more interested in some of the "basic" issues, such as Intel's organizational structure, how to establish a PC production line.

"Intel has never encountered the same situation in China as it has in China. We have to face an industry that is just in its infancy. Intel's own strategy and tactics are not very clear. Many other things that have matured elsewhere have come to China. No use.” At that time Intel’s executives in China had complained, “Chinese PC companies have even simple power supply tests and memory strip tests in R&D. All of them require Intel engineers to work hand in hand with them.”

"All this has made Intel realize that the best thing we can do is to help Chinese companies improve their capabilities, to guide consumers together, to make everyone realize what computers can do and to nurture the market. So, in the decades that followed, Intel A close alliance was reached with Chinese PC manufacturers to promote the prosperity of the Chinese market. During this period, Intel released its most advanced chip products synchronously with China in the world, even starting in China.” Ge Jun said, the result is naturally a win-win situation. — China's computer industry and computer manufacturers have grown rapidly to today's scale, and Intel has also seized this wave of historic opportunities and has dominated the Chinese market with an absolute leading market segmentation advantage.

Looking ahead, Intel has a new plan.

“In recent years, local Chinese companies have continued to grow and develop. They are already not satisfied with the domestic market and have begun to look to the world. In this process, Intel will collaborate with domestic companies to innovate, support each other, and cooperate with each other to establish a foothold in the Chinese market. To win the future of the world market."

In Ge Jun’s view, if Intel’s development in China is to say “InChina (in China)” in the first decade and “With China (in China)” in the next decade, then the next decade will be “For China.” (for China)."

The unique innovation culture “The number of transistors integrated on the integrated circuit chip doubles every 18 months.”—Some people who understand the IT industry will not be unfamiliar with this famous “Moore's Law”.

As one of the founders of Intel, Gordon Moore put forward such a "law" that is actually not a "law" of mathematics or physics, but only an analysis and prediction of development trends.

“In spite of this, over the years, it has been the driving force behind the continuous innovation and development of the industry. In this industry, we must abide by this law. You can only succeed if you catch up or break through it.” Ge Jun told reporters, so for any For a company that works hard in the IT industry, innovation has become the core task of maintaining survival and development.

The fierce competition in the IT industry As we all know, new companies are born and disappeared. However, Intel has a long-term foundation and has maintained its leading position through continuous technological innovation.

In this regard, Ge Jun believes that to a large extent is due to Intel's unique innovation culture.

"Only those people who have a sense of urgency to be prepared for peacetime can succeed." He mentioned the famous statement of Andy Grove, one of Intel's founders and former CEO.

"Intel will never be satisfied with its own success, never." During the interview, Ge Jun told reporters that in the past five quarterly earnings quarters, Intel had set a new record in terms of output value, operating income, or profit, but it was precisely At this time, Intel internally issued a sirens - now is the most critical moment.

"Two weeks ago, 800 high-level Intel leaders gathered in San Diego, California, and held a two-day conference. The purpose was to completely lose the baggage that brought us success, open up new markets, and strive to enter the latest product areas." Say.

"Nothing history has brought, letting go of it, and creating a rotten world." In Ge Jun's view, Robert Neuss, one of the company's founders, can use this sentence to summarize Intel's 40 years of innovation.

“It motivates us not to be intoxicated with success or to compromise on failure. We must always continue to innovate. The best days are the most difficult times; the most difficult days and the most confident times; this awareness is already Into the minds of every Intel employee." Ge Jun finally said that over the years, Intel has become accustomed to respond to numerous challenges with never-ending innovation. It is with long-term accumulation of technological advantages, Intel gradually evolved from a "American company" to a truly "global company."

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