The continued proliferation of technology is driving sustained, long-term demand for semiconductors, creating a $1 trillion market opportunity by 2030. How Intel developed a strategy and roadmap for accelerating growth by doubling down on innovation? Alexis Crowell Helzer, Vice President – Sales Marketing & Communications Group Managing Director – Asia Pacific Territory Intel Corporation. shared her thoughts in our interview session. Intel recently has launched Intel 13th Gen Desktop Processor in Indonesia.
How is the potential Indonesian market, compared to other SEA countries, in the processor industry?
As the largest market in ASEAN, with a population of 270 million, Indonesia is also one of the fastest-growing digital economies in the region, promising immense growth potential as tech efforts ramp up exponentiallyDigital development has also driven economic growth, opened more opportunities, and improved government services in the region. In Indonesia for example, digital technology has contributed to the economy (GDP) even though it is only 4 percent in 2020, but it is predicted to grow to 18 percent in 2030.
Artificial intelligence (AI) is set to be a big game-changer and holds a tremendous amount of value potential. The razor-sharp execution of AI in Southeast Asia alone could boost the region’s gross domestic product (GDP) by nearly US$1 trillion in ten years. Indonesia’s economy is expected to shift into a higher gear with AI, with an expected US$366 billion added to the country’s gross home product by 2030, as per research by EDBI and Kearney. There are more organizations integrating the technology into their operations, and its application is expanding in various fields.
In terms of progress in AI, a 2018 International Data Corporation survey found that Indonesian companies had the highest rates of AI adoption in Southeast Asia, with 24.6% of organizations integrating the technology into their operations. There are a number of state projects that have employed AI to anticipate state fires for example; and some government agencies are promoting AI development and technology-based tools at schools and other learning institutions. There is also the Jakarta Smart City initiative, which uses AI to tackle the city’s governance, people, living, mobility, economy, and environmental issues.
In 2020, the Indonesian government also introduced a national strategy that will guide the country in developing AI between 2020 and 2045, focusing on education and research, health services, food security, mobility, smart cities, and public sector reform. As you know that our 13th Gen Intel Core has extraordinary gaming performance and content creation, it also has great potential in Indonesia. Because the gaming market in Indonesia is the 16th largest in the world and the largest in Southeast Asia. At the end of 2021, sales accounted for USD 1.92 billion. Meanwhile, the market value of the content creator industry in Indonesia reaches IDR 4 trillion to IDR 7 trillion. Its value will increase fivefold by 2027.
While we are facing a global recession in 2023, how will this sector keep growing?
Despite the worsening economic conditions, we remain committed in our effort to deliver solid results and make significant progress with our product and process execution. We continue to make progress toward achieving five nodes in four years. From a product execution standpoint, we shipped our 4th Gen Intel® Xeon™ Scalable processor (Sapphire Rapids) high-volume SKUs; launched our 13th Gen Intel® Core™ processors; launched the Intel® Data Center GPU Flex Series and the Intel® Arc™ A770 and A750 desktop GPUs.
To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future. As we usher in the next phase of IDM 2.0, we are focused on embracing an internal foundry model to allow our manufacturing group and business units to be more agile, make better decisions, and establish a leadership cost structure. We remain committed to the strategy and long-term financial model. We continue to believe we have a compelling long-term opportunity ahead, and this downturn represents an opportunity to more quickly make the transformations necessary to achieve our goals.
How much growth (in percentage) does Intel Indonesia target in 2023?
We will continue to work towards delivering on our commitments, and focus on quarter-on-quarter growth. But one thing I want to highlight about Indonesia is, being in the IT business in Indonesia at the moment is really good timing. With the Making Indonesia effort, there’s a ton of opportunity for companies, whether it’s the local OEMs, and other sectors, including the creation of an ecosystem around it. We’ve been a big part of building ecosystems around the world. So we’re very happy and glad to participate in helping build that out here.
What is your strategy in the SEA market regarding market penetration? Which SEA country will you focus on in 2023?
The continued proliferation of technology is driving sustained, long-term demand for semiconductors, creating a $1 trillion market opportunity by 2030. We’ve developed a strategy and roadmap for accelerating growth by doubling down on innovation, driving deeper collaboration with our customers and partners, and leveraging our core strengths to successfully grow traditional markets and disrupt new ones. Our goals are ambitious, but we have the right strategy and right team to achieve them.
Be the leader in every category in which we compete. Our set of leadership products helps customers capitalize on digital disruption. Being able to expertly construct the best products using the best technologies is a critical differentiator for us—and one that delivers enormous value for our customers. Our ability to combine multiple process technologies—both internal and external—with novel packaging technologies allows us to uniquely tailor products to customer and market needs.
Execute flawlessly to our commitments. We measure ourselves by our customers’ success. Our priority is to deliver the technology leadership and reliable, top-quality products they need and expect. We are executing to our roadmaps and accelerating to deliver an annual cadence of process and packaging innovations through 2025.
Passionately innovate with boldness and speed. We are unleashing our innovation engine to relentlessly identify and solve challenges across a wide variety of industries while delivering products with improved performance and lower power consumption. These technical innovations mean our customers can count on Intel for their next-generation innovations that will fuel the continued digitization of everything.
Reignite our culture to attract and motivate the best engineers and technologists on the planet. We will harness our shared values, Groveian principles, and world-class technology to build and develop a team that galvanized industry for positive impact.
For the region, we want to innovate from Asia for the world, with Intel solutions and services functioning as the building blocks of organizations’ digital transformation. To that effect, Intel has invested significantly into engineering and innovation in Malaysia, Vietnam, Taiwan, and more recently, India, with the recent launch of a new design and engineering center in Bengaluru, which makes up part of Intel’s largest design and engineering operations outside the US.
We want to continue helping our customers innovate to solve the real issues of today and to impact lives positively We’re also investing into the region for the long-term, by identifying customers and collaborators with whom we can win together.
When global economy slowdown in 2023, what are your plans to keep Intel’s business sustaining and growing?
Despite the worsening economic conditions, we remain committed in our effort to deliver solid results and make significant progress with our product and process execution. We continue to make progress toward achieving five nodes in four years From a product execution standpoint, we shipped our 4th Gen Intel® Xeon™ Scalable processor (Sapphire Rapids) high-volume SKUs; launched our 13th Gen Intel® Core™ processors; launched the Intel® Data Center GPU Flex Series and the Intel® Arc™ A770 and A750 desktop GPUs.
To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future. As we usher in the next phase of IDM 2.0, we are focused on embracing an internal foundry model to allow our manufacturing group and business units to be more agile, make better decisions, and establish a leadership cost structure. We remain committed to the strategy and long-term financial model. We continue to believe we have a compelling long-term opportunity ahead, and this downturn represents an opportunity to more quickly make the transformations necessary to achieve our goals.
