As semiconductor trade and investments are increasingly restricted between the US and China, Pat Gelsinger's first-ever visit to China as Intel's CEO underscores the chip giant's desire to strike a balance between the two powers.
Chinese business daily 21st Century Business Herald reported that Gelsinger traveled to China to attend Intel's sustainability summit in Beijing, marking Gelsinger's first visit to China as Intel's CEO after China lifted its COVID measures. Gelsinger said that Intel's presence in China is very important as the country is one of the world's largest markets and also one of Intel's most important markets.
Gelsinger met with China's senior officials during his China visit. According to the Chinese Ministry of Commerce's press release, Wang Wentao, China's commerce minister, said that China would keep its commitment to opening up and modernization to provide opportunities for the world, and offers a huge market for multinationals, such as Intel. Wang added that the Chinese government has talked with Intel regarding the security and stability of global semiconductor supply chain as well as Intel's operations in China.
Meanwhile, Reuters reported that China's vice president Han Zheng had urged Gelsinger to take root in China to help maintain the stability of the global industrial supply chain, and that multinationals must overcome obstacles to facilitate enhanced global collaboration.
Taiwan-based USTV reported that one of the aims Gelsinger wants to achieve in his China visit might be related to the acquisition deal of Tower Semiconductor by Intel, which is reportedly delayed due to China's slow review process as a countermeasure to the US's anti-China restrictions. Intel announced its proposal to acquire Tower Semiconductor in February 2022, and the company said in a statement to Bloomberg that the deal is expected to be closed in the first half of 2023.
Meanwhile, Intel seems to be preparing for a divided semiconductor industry. Tom's Hardware reported earlier that Intel had decided to eliminate the Data Center Max GPU 1350 and introduce a new Data Center Max GPU 1450 later in 2023, with the latter tailored for "different markets," which Tom's Hardware suspects pertain to China.
Gelsinger's China visit follows similar moves by Apple CEO Tim Cook in late March when Cook praised Apple's symbiotic relationship with China.
Besides the sanction list against Chinese companies, the US has imposed an export ban on advanced semiconductor technologies and is urging its allies to follow suit. On the other hand, China is trying to fend off by launching the National Integrated Circuit Standardization Technical Committee to establish its own standards and set rules for the game.
