Intel eyes servers, IoT for future growth

After struggling in a declining PC market, Intel is refocusing on the next areas of computing.

Intel has been striving to maintain revenue growth in the post-PC era. While PCs are not dead, they no longer occupy the place in the market they once did due to the proliferation of smartphones and tablets. Windows tablets with Intel processors have done well in some respects, but most started appearing when the tablet market was in decline. This is why Intel has decided to refocus and CEO Brian Krzanich has made a post on Intel's website explaining where the company sees growth.

New areas for Intel will mostly be in servers, the Internet of Things and 5G. These are all intertwined, of course, which is why they are smart bets. Intel, however, might have an uphill battle in IoT, where many ARM-based chipmakers have a lead in all kinds of devices. But it might find its niche in servers since IoT relies on cloud computing. This is an area where Intel excels as it still makes the most powerful chips on the market.

The next generation of wireless technology, 5G, will also be important in connecting IoT devices. This is why Krzanich wants to make sure Intel is a leader in this segment. Krzanich said Intel has the "technological strength to deliver end-to-end 5G systems, from modems to base stations to all the various forms of connectivity that exist today and will exist tomorrow."

This makes more sense than Intel trying to power the myriad devices that will be connected to the IoT. Smaller devices tend to run on ARM processors, which are generally more power efficient. This is what made Intel lose out in mobile in the first place. The importance of these low-powered chipsets is why China has been focusing on building its own semiconductor industry. China still has a long way to go, but the future might have many different IoT devices completely designed and manufactured in China. Krzanich said Intel will focus on autonomous vehicles and the industrial and retail sectors, but he does not rule out other applications.

Intel is looking in the right places for growth, but these are not without competition as other chipmakers will have an opportunity to grab market share as the IoT market develops.

See a comparison table of selected PCB assembly suppliers on GlobalSources.com