After Zhan Rui and Intel announced their 5G cooperation statement on the 26th, Wu Huixiong, Senior Vice President of Zhan Rui, gave an exclusive interview to Operator World Network. He emphasized that 5G represents a major strategic opportunity for Zhan Rui, and the dominance of mobile chip manufacturers in the 4G era is definitely coming to an end. In the 5G era, Zhan Rui aims to partner with Intel and climb to the top three globally.
The domestic chip market is set to undergo significant changes in the 5G era. As a chip manufacturer under the Ziguang Group, which was formed by the merger of Spreadtrum and Rydike, Zhan Rui has grown significantly over the years. In 2013, Ziguang acquired Spreadtrum for $1.8 billion, followed by the acquisition of Radico Microelectronics for $907 million in 2014. The two companies were fully integrated in early 2019, with Zeng Xuezhong appointed as CEO.
At the MWC show in Barcelona, Zhan Rui and Intel jointly announced a global 5G strategic partnership. The collaboration will combine Intel's baseband technology with Zhan Rui's chip design capabilities to develop a high-end Android 5G smartphone platform. This platform will be based on Zhan Rui's application processor, equipped with Intel's 5G baseband and ARM architecture, targeting the Chinese market. The product is expected to launch in the second half of 2019, supporting both 5G and 5G networks.
Wu Huixiong highlighted that Intel's strong expertise in wireless communication and its role as a shareholder of Zhan Rui have laid a solid foundation for their collaboration. Over the past year, Intel has supported Zhan Rui in launching the SC9861G-IA and SC9853I chips. Looking ahead, the two companies plan to engage in long-term 5G collaborations, including product development based on Intel's XMM 8000 series baseband for various markets and product lines.
Intel has invested 900 million yuan (approximately $1.5 billion) in Zhan Rui, a move that reflects the company’s confidence in Zhan Rui’s capabilities. Wu Huixiong stated, “The mobile chip industry is a marathon. The most important factors are product capability and continuous investment. Zhan Rui excels in both.â€
He pointed out that Zhan Rui sees two major opportunities: 5G and IoT. “China is rapidly moving towards 5G. For Zhan Rui, this is a key strategic opportunity and a responsibility for Chinese chip manufacturers. We are currently the third-largest mobile chip company in the world, and our goal is to become one of the best,†he said.
To achieve these goals, Zhan Rui has made substantial investments. In the 3G era, the company had only a few hundred employees, but now it has over 4,500, with 90% being R&D personnel. The company is increasing its investment in 5G and is committed to becoming a leading global brand in 5G chips.
At the product level, the collaboration with Intel has officially launched Zhan Rui’s “5G Chip Global Leading Strategy.†Wu Huixiong openly stated that the partnership will focus on the high-end market. Internally, Zhan Rui has restructured its operations, organizing eight product lines, each with specific business objectives and operational capacity building. A dedicated team for strategic customers has also been established to enhance communication, plan products, and provide tailored after-sales service.
Currently, Zhan Rui ships over 400 million functional machine chips annually, capturing more than half of the market share. While the rise of 5G does not mean the decline of feature phones, Wu Huixiong believes the feature phone market will remain relevant for a long time.
However, Zhan Rui has higher ambitions. “When the domestic 5G market starts, we will prepare high-quality 5G commercial chips. Zhan Rui will make a fresh start in the 5G era,†he confidently said.
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