In 2015, Intel celebrated its 30th year operating in China. Over the last 30 years, Intel has invested more than $7.5 billion USD in China and we continue to see tremendous opportunity in this important market. Some of our more recent investments include innovative engagements with companies like Rockchip and Spreadtrum Communications targeting mobility markets with new capabilities.

Today, I want to share with you an update on Intel’s continued investment in China and important efforts to form unique strategic relationships in China focused on the data center segment.I am pleased to announce that we have formed strategic collaborations with Tsinghua University (TU) and Montage Technology Global Holdings, Ltd., a leading Chinese technology company, to bring locally developed, indigenous solutions to meet specific requirements for data center infrastructure in China.

The rise of the digital services economy, often described as the ‘Internet Plus’ era in China, has resulted in tremendous growth of data centers and a diversification and proliferation of workloads. Intel serves this growing data center market in a variety of ways with the industry-leading Intel® Xeon® processors and other silicon components. This includes collaborating with companies that combine our standard Intel processors with their own innovations to build unique solutions that address specific workloads and technology requirements.

TU is a leading research institution, with world-class capabilities in reconfigurable computing. Through our collaboration, TU will develop a reconfigurable computing processor (RCP) module and associated system software that will work with a standard Intel® Xeon® microprocessor to add capabilities that address specific local requirements. Montage Technology will commercialize the innovative new products that use Intel Xeon processors and TU’s RCP and deliver them to the Chinese market in 2017. See schematic below.

We believe this new collaboration is a win-win as it enables TU and Montage to innovate alongside standard Intel Xeon processors to create new and compelling indigenous products while preserving the respective intellectual property ownership of all parties.

Today marks another successful milestone in our collaborations with Chinese partners to enable indigenous innovation.