Intel’s new Chinese chip innovation centre is a collaboration with a Shenzhen district, deepening ties amid US scrutiny

The US chip giant partnered with the Nanshan district government and local tech firms on a centre focusing on AI, chip applications and edge computing

Intel has been seeking to maintain business in the world’s second-largest economy, with CEO Patrick Gelsinger travelling there twice in three months

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Attendees look at their smartphones at a booth from chip maker Intel at the PT Expo in Beijing on October 31, 2019. Photo: AP

Published: 7:00pm, 31 Jul 2023

US chip giant Intel is increasing its business ties in China with a new innovation hub in Shenzhen meant to help domestic start-ups, even as Washington puts increasing pressure on semiconductor firms to reduce trade with the country.

The Santa Clara-based chip giant and the Nanshan district government in Shenzhen, a technology hub in southern China, launched the Intel Greater Bay Area Innovation Centre on Saturday, according to a post published to the centre’s official WeChat account. The centre will focus on artificial intelligence (AI), chip applications and edge computing, among other technologies, the statement said.

The district government aims to use the partnership to grow into a global “innovation highland” through a combination of industrial policy, Intel’s product and technology ecosystem, and innovation from local partners, according to the statement.

“We will further leverage Intel’s technology and ecosystem strengths … facilitate the integration and development of emerging sectors in the Greater Bay Area and across the country … and help develop the digital economy,” Intel China chairwoman Wang Rui said at the centre’s unveiling event.

Intel is one of multiple US tech giants trying to maintain business in the world’s second-largest economy amid the souring of US-China ties that has seen Washington ramp up chip export restrictions. The tech war has also bolstered demand for electronic components in China, and for chips in particular.

Intel CEO Patrick Gelsinger concluded a low-key trip to China earlier this month, his second to the country in three months.

For the Shenzhen centre, Intel will partner with six local tech firms including gadget maker Ugreen and fabless integrated circuit firms Senary Technology Group and Chipsea Technologies, which all signed an agreement with the chip giant during the launch event. The companies will set up multiple joint labs to research areas including low-carbon and energy-saving IT solutions, PC and server chips, and smart transport.

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