Chip of a new block: Here's how Intel is working on next set of innovations

Intel knows how to change with the times. As the component markets looks ready to splinter into pieces, Intel — which had faced a similar existential threat in the post-PC era — is ready to change tack. It is targeting every corner of the data centre, with products aimed at storage, network services, IoT devices and infrastructure and AI acceleration systems. India happens to be a key pivot of its new strategy.

The average Indian consumer consumes 13 gigabytes (of data) across devices a month. For businesses looking to harness the true potential of this data, leveraging technologies such as AI and 5G is crucial. 

In its revamped avatar as a data centric company, the world’s largest chipmaker Intel is working on the next set of innovations piggybacking on 5G network deployment and on newer ways to store and process data. Its local arm, Intel India, has aligned itself with this goal, and hopes to leverage investments lined up by the parent and the research and development (R&D) capacities developed over the past many years. 

The crux of Intel’s India strategy rests on providing customised solutions for data storage, developing application-based AI research models across domains such as health care and education and tapping the business opportunities arising from the 5G rollout. Nivruti Rai, country head, says, “The US is the largest design house for us, India is the second. We’ve spent more than $5 billion in India over the last 20 years. That is, every four years we have spent $1 billion and that's the difference between many other MNCs and us — we actually invest,” says Rai.

This, she adds, has enabled it to focus on emerging segments like autonomous driving, programmable chips, analytics, industrial automation, Internet of Things, and smart city management systems, all of which are expected to see huge demand in the future. She says it is the same vision of the future that has steered the company’s global focus beyond just chips and semiconductors. 

Underlying most of these is the evolution of 5G technology. A 2017 research report by market research firm IHS showed the global 5G value chain will generate $3.5 trillion in output and generate 22 million jobs by 2035. In addition, the global 5G value chain, it estimated, will invest an average of $200 billion annually to build and expand the 5G technology base. “4G connected everyone that had a phone, 5G will connect everything. Everything that is smart can be connected,” Rai says. 

Earlier this year, Intel sold its smartphone modem business to Apple for about $1 billion, and made its intention to focus on building 5G technology for non-smartphone applications clear. “If there is one technology that has the capability to almost double the world economy it is 5G,” says Rai.

Her optimism is not misplaced. The march of 5G is expected to be accompanied by constant data generation, which is fuel to its growth plans. “By 2025 the world will have more than 100 zetabytes of data. And the bulk of this data was created in the last five years. If we don’t work towards smart storage solutions, cities and cities will be wasted to store this kind of data. Intel has come up with what is called a 3D cross point storage technology. This will enable you to store huge amounts of data in a pen drive like form factor,” says Rai. 

So what are the application areas?

Take India’s urban transportation needs that are a function of both how automobiles work and the condition of roads. Intel is using tools like road experience management and advanced driver assistance systems to localise vehicles within digital maps relative to various landmarks as well as other vehicles, traffic lights and even potholes. 5G provides technologies that will enable super fast applications to establish these connections.

Another area where Intel is hoping to reap the early mover advantage is data and analytics. In analytics, for instance, Intel has technology that can draw a heat map of traffic and dynamically slow down traffic signals to manage congestion. “We started thinking of how to leverage some of the solutions we have developed to create value,” said Rai. The result is for all to see.

She says 5G is one technology where the government, industry, academia have to come together to make investments because the expected outcome for industry is huge. 

Policy support, that is, how AI and allied technologies are governed and facilitated will be just as crucial and for this, Intel India has already started engaging with potential partners. “AI policies are very important. For example, if an autonomous driving car is involved in an accident, who is to blame? What we started doing was develop something called ICTAI — the International Centre for Transformative AI in India,” Rai said. The ICTAI is a partnership among NITI Aayog, Intel and Tata Institute of Fundamental Research to come up with application-based AI solutions needed for critical domains such as health care, agriculture, and smart mobility.

In February this year, Intel partnered with the government of Kerala through UST Global, to launch a new laptop brand, Coconics. Coconics is a public-private venture to manufacture affordable laptops. 

But will the turmoil in the telecommunication sector throw a spanner in the works? Or will telecom companies gradually becoming more software centric (which Intel’s CEO Bob Swan had earlier called another focus area) open up new opportunities for the firm? 

Watch this space.

5th Gear

• With 5G, areas like autonomous driving, industrial automation and smart city management systems are expected to see huge demand worldwide and in India

• 5G value chain is expected to generate $3.5 trillion in output and generate 22 million jobs by 2035 globally

• The chipmaker with a data-centric focus has teamed up with NITI Aayog and Kerala government to provide both hardware and software support

• Intel intends  to focus more on 5G technology for non-smartphone applications as it looks at a world full of connected things than one with just connected smartphone users

• While Intel is bullish on 5G in India, experts fear that with two of the three top telcos posting heavy losses, the investment for the technology may get adversely impacted