Intel mobile chips for two Chinese companies $ 1.5 billion of investment to make it with a third-party alliance. The Chinese government intends to create a domestic mobile chip business, challenge industry giants Qualcomm and Samsung Electronics.
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Ten years, the Chinese government will semiconductor design and manufacturing of industrial policy as an important focus. Over the past year, the industry-related activities increased significantly, there has been a series of cross-border mergers and acquisitions and cooperation deals.
Nomura Securities analyst Huang Leping, said: "We have entered a turning point, government policies play a role in this, began to help local semiconductor industry."
This transaction expands Intel's position in China, and promote the company's efforts over the years to catch up with Qualcomm's footsteps. Intel Chief Executive Branch and then the odd (Brian Krzanich) early August this year, Beijing had more than 24 hours of negotiations on the deal.
Branch and then the odd key stroke in China is visiting Chinese Vice Minister of Ministry of Industry and Yang Xue Shan. The latter is essential for reaching agreement.
Intel September 26 announced the acquisition of Purple Communications Group's development and RDA Microelectronics 20% of the shares, intended to jointly develop and sell smart phone chips.
China is the world's largest smartphone consumer and manufacturing country, but is heavily dependent on imported chips, especially the smart phone processor, which consists essentially of Qualcomm, Samsung Electronics or MediaTek China Taiwan production.
Chinese semiconductor industry to increase development efforts with the United States "prism plan" exposure-related. The plan prompted China to take a number of actions to improve the safety level of the information technology industry.
For Intel, the unis for its enterprise agreement to enter Chinese market offers an additional choice. Intel is the world's leading personal computer chip maker, but for those mobile revolution as well as the design of smartphones and tablet PCs chips started a bit late.
John Mandeville Intel spokesman declined to comment.
China Semiconductor Industry Association estimates that in 2013 China's chip industry revenue of 251 billion yuan, while the domestic demand for chips accumulated 917 billion yuan, accounting for over half of the global semiconductor consumption.
National People's Congress, China Academy of Engineering Deng had said in March this year, 2013 Chinese chip imports more than $ 200 billion mark, and over the oil imports.
June of this year, China's State Council issued the most comprehensive guidelines for the development of the semiconductor industry, China clearly put forward in 2015 and 2020 revenue targets.
Analysts and industry insiders said the Chinese government is an important part of the move is to integrate Spreadtrum and RDA Microelectronics. Previously the two companies have a separate listing on the Nasdaq.
A year ago, unis $ 1.7 billion, respectively, at a price of $ 900 million and the acquisition of the two companies. Purple Group is affiliated with Tsinghua Holdings Limited.
As part of the recent agreement, Intel and Purple Group will establish a new holding company, holds Spreadtrum and RDA Microelectronics shares.
According to a person familiar with the Purple Group statement, the Chinese government hopes Purple Group is able to compete with Taiwan's MediaTek within five years, and in 10 years beyond Qualcomm.