Intel, the once-dominant chipmaker struggling to stay relevant amid intense competitors and slumping progress, is shifting into China’s booming electrical car (EV) market. The corporate has launched a brand new graphics processing unit (GPU) designed particularly for in-car AI functions, even because it faces stress from Washington to restrict high-tech exports to China.
The California-based firm unveiled its Arc Graphics for Automotive discrete GPU at a product launch event in Shenzhen on 8 August 2024. This transfer comes as Intel grapples with disappointing monetary outcomes which have sunk its shares by almost 60% this yr, forcing the corporate to announce plans to put off greater than 15% of its workforce – some 17,500 staff – as a part of drastic cost-cutting measures.
Regardless of these challenges, Intel is doubling down on the world’s largest EV market. “China’s speedy EV improvement cycles and superior technological adoption make it a really perfect testing floor for our next-generation applied sciences,” stated Jack Weast, VP and GM of Intel Automotive, in an announcement launched for the occasion.
The brand new chip, a part of Intel’s Arc Sequence discrete GPUs first launched in 2022 for video gaming laptops, guarantees to “run full massive language fashions (LLMs) contained in the automobile” and allow “triple-A gaming experiences,” in addition to run generative AI functions domestically slightly than counting on cloud computing. This push into automotive AI displays the rising demand for computing energy in more and more subtle car cockpits. US semiconductor rivals Nvidia and Superior Micro Units additionally ramped their efforts on this market section.
Intel defies geopolitical tensions with concentrate on China
Intel’s transfer to concentrate on the Chinese language market is especially noteworthy given the continuing tensions between Washington and Beijing. The US Authorities has been pressuring semiconductor companies to limit high-tech exports to China, citing nationwide safety considerations. Nevertheless, Intel appears to be charting its course, looking for to deepen ties with the world’s second-largest economic system.
This technique is obvious in Intel’s current actions in China. In July 2022, the corporate partnered with the Nanshan district authorities in Shenzhen to launch the Intel Better Bay Space Innovation Centre, specializing in applied sciences together with AI and edge computing. Extra not too long ago, Intel determined to maneuver the headquarters of its automotive unit to mainland China, with Weast himself relocating to Beijing.
Total, the launch of the Arc Graphics for Automotive GPU is not only about getting into a brand new market section; it’s additionally about providing a scalable platform for automakers. Intel claims its resolution permits automobile producers to design a single-vehicle platform that scales throughout completely different trim ranges. Entry and mid-level fashions can leverage Intel’s software-defined car (SDV) system-on-chips (SoCs). In distinction, higher-end automobiles can profit from the added horsepower of the discrete GPU for extra premium options.
This method could possibly be significantly interesting to Chinese language automakers identified for his or her speedy improvement cycles and eagerness to include cutting-edge applied sciences. By providing a versatile and scalable platform, Intel is positioning itself as a key associate within the evolution of sensible automobiles on the planet’s largest auto market.
Nevertheless, Intel’s technique has dangers. The corporate’s choice to deepen its engagement with China comes at a time of excessive geopolitical tensions, and the worldwide semiconductor trade is more and more caught within the crossfire of US-China relations. There’s additionally the query of whether or not Intel can successfully compete in a market the place it’s taking part in catch-up to extra established gamers within the automotive chip area.
Furthermore, Intel’s pivot to China and the automotive sector comes as the corporate faces important inside challenges. The not too long ago introduced layoffs are a part of a broader restructuring effort to chop prices and streamline operations. When requested whether or not the job cuts would have an effect on staff on the mainland, Intel informed Chinese language information outlet Jiemian that the layoffs are “international” with out offering particular particulars.
As Intel navigates these turbulent waters, the success of its automotive AI initiative in China may show essential. If the corporate can set up a powerful foothold on this quickly rising market, it would discover the lifeline it must regain its footing within the international semiconductor trade. Nevertheless, the trail ahead is fraught with technological and geopolitical challenges that may take a look at Intel’s skill to innovate and adapt in an more and more advanced international market.
(Photograph: Intel)
See additionally: US plans to ban Chinese tech in autonomous vehicles
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