Dialogue with Wang Rui, Chairman of Intel China: 1.8nm process tape-out firmly believes that 2025 will return to the lead

Our reporter Tan Lun reported from Beijing

After more than three years of the impact of the new crown epidemic, the global semiconductor market has entered a new round of adjustment cycle. The market chill brought about by the decline in demand was also the first to be transmitted to the semiconductor industry giants. How to deal with the challenge has become a new issue facing the former.

"Short-term adjustments will not affect the long-term positive trend of the industry." At the recent 2023 China Strategic Media Conference, Wang Rui, senior vice president and chairman of Intel China, made a concise and optimistic expectation for this. As a representative of the global semiconductor field, Intel's current main business is favorable, giving Wang Rui confidence confidence.

According to Wang Rui, 7 of the world's 10 largest customers who need wafer foundry are actively exploring cooperation with Intel, while Intel's foundry business continues to grow, including 43 potential customers and ecological partners testing chips. At the same time, she further revealed that Intel is currently in accordance with 4 years and 5 nodes, and plans to regain the leading position in process technology in 2025.

What is particularly eye-catching is the results of Intel China. Financial report information shows that in 2022, China's revenue accounts for about 27% of Intel's total revenue. With the post-epidemic economic recovery, the growth of China's performance is still expected. According to the latest forecast of the China Academy of Information and Communications Technology, by 2025, the scale of the mainland's digital economy will exceed 60 trillion yuan, and the input-output efficiency of the mainland's digital economy will increase to about 3.5. The macro improvement has undoubtedly given Intel more confidence.

However, this still does not completely dispel the doubts of the outside world. In the latest financial report for the fourth quarter and full year of 2022, Intel's revenue and net profit figures were not satisfactory, setting a new low loss in recent years. In this regard, Wang Rui also cited the industry view - semiconductor companies such as Intel, the comprehensive transformation usually takes 4 to 5 years - in order for the industry to take a longer-term view of this old giant that is completing its self-innovation.

"We are in the process of a comprehensive transformation around the IDM2.0 strategy, and the pain of transformation is difficult to avoid." After admitting the current difficulties, Wang Rui also made more positive outlooks. In subsequent interviews with media including China Business News, she responded to hot issues such as process advancement, the prospect of the Chinese market and industrial competition.

Talking about foundry: 1.8nm process has tape-out We firmly believe that 2025 will return to the lead

Since Pat Kissinger took over as Shuaiyin in early 2021, Intel's biggest change has undoubtedly come from the IDM2.0 strategy proposed by the former. According to the previously announced plan, Intel proposed five advanced process roadmaps, including Intel 7, 4, 3, 20A, 18A, the latter of which correspond to the 7nm-1.8nm process in the current mainstream market.

In this interview, Wang Rui revealed the latest progress of various processes to reporters. Among them, Intel 7 has been mass-produced, Intel 4 will enter in the second half of this year, Intel 3 progress is also as expected, and the most advanced Intel 20A, Intel 18A, tape-out has also come out.

"We are very confident that by 2025 we will be able to return to leadership." Wang Rui pointed out that Intel is not a fabless company, but an asset-heavy enterprise, so in terms of manufacturing, Intel will invest more than other companies, plus the need for design, so it is more complex than specialized foundry companies, which makes the outside world question Intel's adherence to the IDM model.

Even so, Wang Rui said that she understands that there are different voices in the outside world, but the company is convinced of the IDM2.0 strategy: on the one hand, Intel is one of the few manufacturers in the world with chip manufacturing capabilities; on the other hand, the backwardness of the process in recent years has indeed had a great impact on the company's operations in all aspects, which also makes Intel have a great desire to return to the first camp of the world's advanced processes.

"Once this capability is restored, combined with Intel's ability to diversify its architecture, there is a strong sense of confidence within the company to return to the lead." She emphasized that the biggest challenge of the IDM2.0 strategy comes from the company's internal execution. "You have to keep up with progress every day, and with that kind of execution, when we rely on our strategy to get back on our feet, it's unstoppable."

Talking about the Chinese market: Chengdu plant expansion growth is expected to be higher than the world

Because of its revenue share of nearly a quarter, China has always occupied a special position in Intel's global strategy. In this interview, Wang Rui also once again emphasized that Inter will always uphold the concept of taking root in China and serving China to promote common development.

In order to better integrate global resources to support local operations and carry out more in-depth cooperation on China's local driven innovation, Intel proposed a strategic upgrade in China in 2022. Specifically, Wang Rui said that Intel's new strategy in China will focus on four aspects: promoting digital innovation, building an open ecosystem, practicing sustainable development, and promoting science and technology for good.

"The Chinese market is very important to Intel, even in this environment, we have not reduced our investment in Intel China, and there is no doubt that the Intel China team is further building and promoting cooperation with customers." Wang Rui said.

Among them, most of the investment in China took place in the Chengdu fab. Wang Rui revealed that up to now, 50% of Intel's PC chips have been packaged from the Chengdu factory, and another 20% are semi-finished products shipped to Vietnam. This also means that 70% of Intel's global PC chips are produced through the Chengdu factory.

"The Chengdu plant has completed a lot of expansion in the last two years, and even under the epidemic, we have increased our investment, and we have plans for this, and we have continued to move forward." However, she also stressed that with the fluctuation of demand, Intel's Chengdu factory will also adjust production capacity appropriately, but this will not affect Intel's continuous investment in Chengdu factory.

Although there are positive trends. However, the uncertainty of the external environment still makes the investment market have reservations about the future prospects of Intel China. In this regard, Wang Rui said that Intel is a multinational company, so it will comply with local regulations when operating in any country. "Under the premise of legal compliance, I believe that our investment in China will continue to deepen." She noted.

More importantly, international institutions have also raised their expectations for China's economic growth outlook after China's coronavirus pandemic is largely over. In this context, Wang Rui believes that the incremental opportunities in the Chinese market are ahead of the world. "In terms of potential, growth rate, innovation and other aspects, China is leading. As we mentioned in communication with the headquarters - where is the next 'China'? The next 'China' is still China! ”

Talk about competition: Focus on improving execution Speak only by strength

As the current "veteran" of the global chip field, Intel has participated in and witnessed the complete development history of the semiconductor industry since the last century. Therefore, in the face of today's short-term difficulties and the increasingly fierce competition in the industry, Wang Rui frankly said that Intel has also maintained a more indifferent attitude.

"The important thing is to improve and do yourself well." Wang Rui said that Intel's experience over the years has shown that at any time, its own strength is the first, as long as there are excellent products, it is not afraid of any rival competition, and will also have its own place in the market.

"When your product is not too hard, you can't blame your customers for picking someone else's product." Wang Rui said that why Intel's market share of global PC chips increased in the second half of 2022 is precisely because the company launched good products in the second half of last year. This is the basis for meeting the challenges of competition.

This also applies to the advanced processes that Intel is currently trying to catch up, "When we do foundry, Intel itself is always catching up with the most advanced processes, and all our products are chasing the next generation of the most advanced processes." When we do the foundry business, we can have another competitive weapon in this regard. She said.

When it comes to how to improve their own strength, Wang Rui pointed out that the first thing is not to fall like before, but to improve their own execution. At the same time, we must continue to invest in the future and take a long-term view. In addition, we must uphold the mechanism of cooperation with industrial ecological partners, always take the overall perspective into consideration, provide customers with differentiated services, and maintain unique competitive advantages.

In the face of the unfairness of the competitive environment, Wang Rui pointed out that the whole world has been changing between balance and imbalance. "Competition will create new imbalances, and then the industry will develop and find a new equilibrium again." She said that unfairness has always existed, although Intel has been working hard to create a level playing field, and very much hopes to promote the development of the industry with a fair competition attitude, but in the end, everything still has to speak by strength.