The recent 2024 Intel New Productivity Technology Ecological Conference held in Chengdu has marked a significant moment in the tech industry, unveiling a blend of innovations and heightened collaboration among industry players. With over 2,000 partners attending and a sprawling exhibition space displaying more than 730 industry applications, this gathering is noted as one of the largest of its kind organized by Intel in China.

Historically, Intel's conferences have revolved separately around key sectors like data centers, PCs, and software. This year, however, the company has chosen to merge several important ecological forums, signaling a more integrated approach to innovation. Intel’s leadership recognizes not only the challenges faced within its market but also the growing competition from both within the traditional x86 ecosystem and the rising ARM camp.

Intel holds a prominent place as a leader in the x86 ecosystem, yet the company is currently experiencing a downturn in its market share due to increasing competition. According to Counterpoint Research, Intel's market share was approximately 80% in 2020, with projections indicating a decline to around 70% by 2026. ARM architecture, represented by companies such as Apple and Qualcomm, is steadily gaining traction and market presence, presenting a formidable challenge to Intel's traditional dominance.

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During the conference, Wang Zhi Cong, Intel's General Manager for China, acknowledged the spotlight on Intel following media scrutiny, conveying that the company is not retreating in the face of these challenges but rather intensifying its efforts. He stressed the importance of innovation and adaptability in response to market requirements.

The ecological conference not only showcased Intel's latest products but also highlighted collaborative advancements across various sectors. For instance, the AI PC exhibit featured innovative applications revealing the benefits of localized AI computing at the terminals. These devices effectively act as assistants tailored for knowledge acquisition, productivity enhancement, entertainment, and content creation. A notable collaboration includes a programming assistant developed with Zhipu AI, capable of generating code in over 300 programming languages based on natural language prompts. Such advancements signify the potential for a more integrated and assisted computing experience powered by formidable processing capabilities, such as Intel’s Core Ultra 200V processor, which boasts an impressive 120 TOPS (trillions of operations per second).

In the data center segment, several leading server manufacturers showcased their products featuring Intel CPUs. Notably, Inspur, H3C, ZTE, and Super Fusion presented both generic servers and AI-focused server solutions. Intriguingly, the exhibitors emphasized the significance of general-purpose servers, which outnumbered AI server displays. This focus underlines a critical point: while AI servers command higher price points, general-purpose servers are more broadly demanded, illustrating a complex market dynamic.

During discussions, it was pointed out that while the overwhelming majority of AI servers in the market are equipped with Intel Xeon CPUs, they also utilize GPUs for large-scale parallel computations. Reports suggest that more than 70% of GPU-accelerated servers incorporate Intel's technology, underscoring the enduring influence of Intel in high-performance computing environments.

In addition to these demonstrations, the conference also showcased advanced solutions from Intel partners in areas such as liquid cooling, healthcare, transportation, and entertainment, fostering a sentiment of innovation intertwined with collaboration across diverse industries.

Addressing market challenges is a vital aspect of Intel's strategy moving forward. Wang Rui, Intel's Chairman for China, indicated that the company is increasing its investment in semiconductor advanced processes. The upcoming Intel 18A process, set to be manufactured in 2025, promises enhanced performance across Intel's next-generation AI PC processors (Panther Lake) and next-generation data center processors (Clearwater Forest), which are anticipated to launch next year.

Moreover, Intel's extensive AI product portfolio — encompassing Core Ultra processors, Xeon scalable processors, Gaudi deep learning accelerators, and Intel GPUs — equips the company to tailor solutions to emerging market needs. The flexibility offered in integrating CPU and GPU resources exemplifies Intel's commitment to empowering clients across myriad applications, particularly in edge computing environments.

In an exciting development, Intel's Xeon 6 processors now integrate advanced matrix extensions that facilitate AI acceleration calculations, capable of delivering computation speeds exceeding ten times that of comparable models. In scenarios lacking GPU acceleration, these processors can also handle AI models with billions of parameters effectively.

Additionally, servers equipped with Gaudi deep learning accelerators are now being supplied to key players in the Chinese internet, telecom, and cloud computing sectors, reflecting Intel's strategy to maintain relevance in a rapidly evolving landscape.

Intel is not resting solely on hardware advancements. The organization is actively pursuing strategic partnerships to enhance its software ecosystem, recently announcing collaborations with over 150 global independent software developers and 40 in China.

Furthermore, Intel’s collaborative initiative with AMD, forming the x86 Ecosystem Consulting Group alongside industry allies such as Broadcom, Dell, Google, Meta, Lenovo, and Microsoft, aims to improve compatibility and consistency among x86 products. This movement is interpreted as a strategic response to the escalating competition from ARM architecture and the challenging wave of AI-driven technology.

However, whether Intel’s myriad initiatives will yield concrete results remains an open question, as the tech industry continues to evolve rapidly. As competitors innovate and market demands shift, Intel's path forward is underscored with both opportunity and uncertainty.