Another issue for Intel is China's crackdown in recent years on monopolies. For instance, the government fined Qualcomm, which dominates the mobile chip market, $975 million for anticompetitive behavior. Intel needs to treat competition in the server market cautiously, leaving some space for the adoption of ARM and OpenPower architectures. To help fend off trouble, Intel has built goodwill with the Chinese government by building a chip factory in Dalian and helping build a strong PC and tablet ecosystem in Shenzhen.
Intel has also partnered with Chinese companies like RockChip to make mobile chips, a further sign that the company is not resting on its laurels in the server market, McGregor said. Over time, the China chip battle will only get interesting.
"There's room for all the players," McGregor said.
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