Intel’s open letter refuses to use Xinjiang products, and the processor market landscape changes drastically

On December 21, 2021, “Observer.com” and other media found that Intel published a multilingual version on its official website to the Supplier Partners of Intel (A letter to the Supplier Partners of Intel), saying: “All forms of human trafficking or non-resource trafficking are prohibited. Labor practices, such as forced labor, debt labor, indentured labor, or slavery. Our investors and customers have asked whether Intel purchases products or services from Xinjiang, China. Governments in many countries and regions have imposed restrictions on products from Xinjiang . Therefore, Intel needs to ensure that our supply chain does not use any labor, purchased products or services from Xinjiang.”

The open letter was signed by Jackie Sturm, Intel’s vice president and general manager of global supply chain, and is available in six languages

In response to the United States and other Western countries slandering the existence of “forced labor” in Xinjiang, China has long expressed its solemn position: This is a century of lies. Some Western politicians, especially American politicians, clamor for so-called “forced labor”, which is essentially engaging in political manipulation under the guise of human rights, interfering in China’s internal affairs, and curbing and suppressing the development of China, especially Xinjiang.

Western politicians continue to discredit Xinjiang and force commercial companies to stand in line. In December 2020, Republican Senator Marco Rubio and Democrat Jim McGoven wrote to Intel and Nvidia on Tuesday (December 8) requesting information on the sale of advanced computer chips to China , These chips are said to be used for large-scale surveillance in Xinjiang. The open letter was sent to then Intel CEO Bob Swan and Nvidia CEO Huang Renxun.

In July 2021, U.S. lawmakers put pressure on five U.S. companies sponsoring the 2022 Beijing Winter Olympics: Airbnb, Coca-Cola, Intel, Procter & Gamble, and Visa, asking these companies to withdraw from sponsoring the Winter Olympics, and accused them of sponsoring the Beijing Winter Olympics. Support China’s persecution of Uyghurs in Xinjiang. The five manufacturers that were questioned all refused to withdraw from the Winter Olympics. However, on Xinjiang-related issues, Steven R. Rodgers, Intel’s executive vice president and general counsel, who attended the hearing, expressed support for the China concocted by US congressmen. In the Xinjiang Human Rights Report, he said: “I have read the report of the State Council, and I have studied it, so I believe in the conclusions of this report.” The other four executives who were questioned stated that they “respect” the conclusions of the U.S. government, but Will not intervene in this matter.

Whether it’s proactively believing in a series of nonsense statements about Xinjiang by Western politicians or succumbing to pressure from the U.S. government, as the first chip company to openly support Western politicians’ comments on Xinjiang, Intel will pay the corresponding price, and its public statement may affect its development. The long-term prospects of the Chinese market have caused drastic changes in the processor market structure.

As the world’s largest manufacturer of desktop processors and server processors, Intel has long held a monopoly in the personal computer and server market. According to its financial report, China (including mainland China and Hong Kong, excluding Taiwan) has become the company for 6 consecutive years The largest source of income, Mainland China and Hong Kong, China, contributed US$20.257 billion in revenue to Intel in fiscal 2020, accounting for 26% of its annual revenue.

In recent years, Intel’s growth has been weak. In addition to its traditional advantages, it has not been able to find a new market direction. The chip manufacturing process that it was proud of in the past has also been surpassed by manufacturers such as TSMC. The CEO has changed continuously and its development ideas have been confused. It is seriously undervalued by the market. Although its annual turnover is still one of the best, its market value ranks far behind Nvidia and TSMC.

Intel will be surpassed by Samsung again in 2021

The change in the processor market pattern in the next ten years may begin with this open letter. Relying on past accumulation, Intel is still in the forefront of global semiconductor companies for a long time, but there are a bunch of unconscious corporate executives, with the shifting market strategy, coupled with eye-catching competitors, the war has been burned to Intel’s doorstep, and Apple launched Intel’s desktop processors have excellent performance and have gradually replaced the original Intel products. Once Apple’s new processor ecosystem matures and the Android system starts to learn from, Intel’s desktop market may collapse. Once the desktop processor market collapses, Intel’s server applications The advantage of ecological consistency will no longer exist.

As the biggest competitor of Intel’s desktop processors, American manufacturer AMD was also forced to make a statement. However, AMD flashed in an open letter. Although it was positive, there was no clear direction.

AMD official website corresponding statement

Chinese Foreign Ministry spokesperson Hua Chunying has repeatedly mentioned that the so-called “genocide” in China is a big lie that violates international law. The so-called Xinjiang Uyghur issue is nothing more than a long-term strategic conspiracy of the United States to mess up and contain China from within. This approach will never succeed in China.

Hua Chunying said: “The United States has no right to accuse China of human rights issues. The play they wrote, directed and acted should end, and American politicians should wake up from their own “Trumen World”.”

At the regular press conference of the Ministry of Foreign Affairs on December 21, a reporter asked: On December 10, the U.S. State Department and the Treasury Department announced that they would impose sanctions on four Chinese officials who allegedly “violated human rights” in Xinjiang in accordance with the internal law of the United States. . What is China’s response to this?

Chinese Foreign Ministry spokesperson Zhao Lijian announced that in response to the above-mentioned wrong actions by the United States, China has decided to conduct reciprocal countermeasures in accordance with China’s Anti-Foreign Sanctions Law. With immediate effect, the US International Committee on Religious Freedom, Chairman Manza, Vice Chairman, Member Bargava, and Member Karl will implement corresponding countermeasures, including prohibiting the above-mentioned persons from entering China, including the Mainland, Hong Kong and Macau, and freezing their property in China. Chinese citizens and institutions are prohibited from dealing with them.

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