Beijing) – Semiconductor giant Intel Corp. is betting that partnerships with small Chinese vendors will help it win tablet and smartphone components markets at the heart of the consumer migration to mobile Internet.
Partnerships with more than a dozen of little-known, minor-brand companies have been set up since executives from Silicon Valley-based Intel started traveling to cut deals in Shenzhen, an electronics manufacturing hub in southern China, about two years ago.
In 2013, a maker of computer tablets called Emdoor Digital became one of the first minor players to sign an agreement with Intel. Shi Yong, general manager of the 250-employee company, said a tablet development partnership was established within 10 days of a visit to Emdoor's headquarters by Kirk Skaugen, a senior vice president at Intel.
The deal-making is part of Intel's so-called China Technique Ecosystem strategy, which is aimed at beating its rival makers of components for mobile Internet devices, including Qualcomm Inc., MediaTek Inc. and Fuzhou Rockchip Electronics Co. Ltd.
Intel is trying to catch up with the competition after losing ground in recent years in the mobile Internet business, which has been dominated by chips developed by Qualcomm, MediaTek and others.
By teaming up with small Chinese companies, Intel has started building a vertically integrated business chain to manufacture mobile devices based on its chips in Shenzhen. It is a strategy that has been music to the ears of more than a dozen companies that got started by churning out simple, cheap products but are now standing tall as members of Intel's global team.
Qihoo 360 Technology, mainland China's biggest internet and mobile security software provider, aims to further build up its internet search business through a global advertising operation in Hong Kong.
"This move signifies our commitment to further developing our business in overseas markets," Qi Xiangdong, the co-founder and president of Qihoo 360, said on Thursday.
Headquartered in Causeway Bay, QS Search was recently appointed by Qihoo 360 to serve as the firm's global advertising arm in Hong Kong. It will provide sales, marketing, consulting and technical support services for Qihoo 360’s online advertisers worldwide.