Intel ready to collaborate with Vietnamese software firms to optimize AI PC features: exec

Intel is planning to support Vietnamese software firms as they develop new features to fully harness the power of AI PCs to serve the Vietnamese people, said Phung Viet Thang, country manager, sales, marketing and communications group (SMG), Intel Vietnam.

What is an AI PC?

AI PC is a recently introduced concept that refers to the next generation of personal computers capable of handling AI tasks. The development of AI PCs for consumers is built upon past successes, thanks to Intel's extensive experience and achievements in designing and manufacturing processors for personal computers.

Previously, a chip would consist of a CPU (central processing unit) and a GPU (graphics processing unit). Now, AI PCs will have an additional processor called an NPU (neural Processing Unit). This represents a significant technological shift. The CPU and GPU will handle heavy AI applications, while the NPU, a specialized accelerator, will process AI tasks and applications, enabling AI PCs to run more AI-intensive applications directly on the device. Therefore, a complete AI PC must include all three components: CPU, GPU, and NPU.

Please tell us about Intel's long-term strategy for promoting AI PCs globally, as well as in Vietnam?

As the world's leading semiconductor manufacturer, we consistently introduce products that can change the world, especially in a hot field like AI. In Vietnam and globally, we will continue our strategy of "Bringing AI Everywhere" or democratizing AI through AI PCs equipped with Core Ultra processors. We want to ensure that every ordinary user can access AI for exploration and innovation. Currently, consumers can purchase AI PC models at stores nationwide without having to wait three or five years.

According to Boston Consulting Group's forecast, AI PCs will account for 80% of the global PC market share by 2028. Intel has swiftly created the best hardware and software platform for AI PCs. A few weeks ago, Intel introduced the new generation of Intel Core Ultra processors, codenamed Lunar Lake, at Computex 2024 in Taiwan.

Lunar Lake processors will be integrated into 80 AI PC models from OEM partners and are expected to reach consumers in Q3/2024, just in time for the year-end shopping season. We will continue to bring users more powerful AI PCs with faster AI processing capabilities and enhanced security.

Additionally, we are implementing the AI PC Acceleration Program globally to support hardware and software partners in optimizing applications and features available on Intel platforms, while also introducing new AI features and applications to enhance user experiences.

Above all, we believe that local software from domestic companies will make the use of AI PCs more optimal for users, as software plays a crucial role in enabling AI PCs to function. Therefore, Intel is ready to collaborate with Vietnamese software companies to first optimize existing features and software. Subsequently, we will support them in developing new features and software to fully harness the power of AI PCs to serve the Vietnamese people.

What is the demand for AI PCs in the Vietnamese market?

According to preliminary results released on April 8 by the market research firm International Data Corporation (IDC), global PC shipments rebounded in Q1/2024 after two years of decline.

The report also indicated that the PC market grew by 1.5% compared to the previous year, with 59.8 million shipments in Q1, returning to pre-pandemic levels. The availability of AI-equipped PCs is expected to drive demand for these devices.

While specific figures for Vietnam are not yet available, we can refer to IDC's general survey, which projects total global PC shipments to reach 265.4 million units in 2024, representing a 2% increase compared to the same period last year.

Let's also rewind to the time of the pandemic. During that period, consumer demand for computers surged as we all had to work from home and our children had to study remotely. This led to a boom in the computer market, with rapid growth.

From that time until now, nearly three years have passed, and the devices purchased by consumers have become somewhat outdated due to the rapid advancements in technology, particularly AI PCs. To stay ahead of the new trend, users will need to upgrade their old devices to new AI PC models to enhance work efficiency, quality, and reduce working hours.

PC demand in the past two years has also been impacted by the economic context, with high interest rates and inflation forcing businesses to postpone equipment upgrades. Therefore, they will also need to innovate to seize the opportunities that AI brings.

Moreover, users in Vietnam have already started applying AI in their work and daily lives, so in my opinion, the demand for AI PCs will increase significantly in the near future. As I mentioned earlier, Intel expects to ship 40 million CPUs for AI PCs globally in 2024.

Where are the processors for AI PCs manufactured? What is the role of Intel Products Vietnam in the global supply chain? And how does AI play a role in optimizing Intel's manufacturing process?

Intel has a global network of factories, and CPUs for AI PCs are manufactured all over the world. Among them, Intel Products Vietnam (IPV) contributes to the creation of these products.

IPV is responsible for testing and assembling products and is the largest factory in this field within Intel's system. Last year, IPV was responsible for manufacturing the 13th generation Raptor Lake and Meteor Lake processors, while accounting for over 50% of assembly and testing output. This information demonstrates the value that IPV brings to Intel's global supply chain.

In our factories, we utilize numerous advanced technologies and machinery, including AI. Intel has applied AI to systemize the supply chain for warehouse optimization, reducing decision-making times from six months to one week, saving us $58 million.

We have also saved an additional $23 million in material costs over the past year by using big data and machine learning to improve decision-making in the design phase.

At IPV, we also apply AI in manufacturing to achieve similar efficiencies.

How do you assess the Vietnamese people's ability to use AI?

In terms of technology adoption, especially AI, Vietnamese people are very quick and adaptable. Vietnam has a large young population, particularly Gen Z, who are very open to new technologies. Currently, many Vietnamese people are already applying AI in their work and daily lives.

In terms of mastering and creating with AI, we see great potential from Vietnamese talents. Intel creates processors and collaborates with both hardware and software partners to develop AI PC products that can maximize the computational power of the processors.

As mentioned earlier, we are ready to collaborate with software companies in Vietnam to help them optimize existing features and applications to run smoothly on Core Ultra-equipped AI PCs. Subsequently, we can help them develop new features and applications to provide better user experiences.

What programs does Intel have to support talent development in Vietnam?

Eighteen years ago, when Intel first invested in building the IPV factory in Vietnam, we collaborated with the Ministry of Education and Training to modernize the curriculum. We called this program HEEAP (Higher Engineering Education Alliance Program). Intel invested approximately $22 million to modernize the curriculum. This program has helped Vietnam train many engineers ready to work in the high-tech industry.

Regarding AI, we have signed a memorandum of understanding with Ho Chi Minh City University of Technology to collaborate on curriculum changes to ensure that new programs focus more on emerging technologies needed by the industry.

In the near future, we will also have collaborative programs with the Ministry of Education and Training to bring Intel's AI training programs to universities in Vietnam. We are trying to accelerate these activities to keep pace with the rapid development of AI in Vietnam.

In the AI PC arena, where many major players are participating, including Qualcomm, how does Intel currently position itself compared to other companies in the industry? What are Intel's core competencies or special advantages in this area?

In the past two years, AI has created powerful momentum that has transformed the entire semiconductor industry. Intel has pioneered in bringing the concept of AI PCs to the market and consumers. Subsequently, other companies have also started following this trend. In Q1/2024, the total number of chips we shipped for AI PCs surpassed the combined total of our competitors.

Therefore, one of Intel's advantages is its extensive experience. Founded in 1968, Intel has a long history in the semiconductor industry. We are pioneers in bringing groundbreaking new technologies to innovate the industry and increase productivity. AI is also a field that Intel has been researching for many years, allowing us to integrate powerful computing capabilities into new processors like Lunar Lake.

The second advantage lies in Intel's broad and open ecosystem of partners. This ecosystem, developed over many years, plays a crucial role in Intel's research and manufacturing process. AI PCs are a crystallization of both software and hardware. Therefore, to have a complete AI PC, we and our hardware partners in the ecosystem must work closely to fine-tune and optimize the hardware. Similarly, for AI PCs to operate smoothly, well-optimized software is also vital. Intel has collaborated with over 100 independent software vendors to optimize more than 300 features and applications. As a result, AI PC models offer consumers smoother and newer experiences.

Finally, Intel's long-standing 86 platform provides high compatibility. Users who purchase AI PCs equipped with Intel processors won't have to worry about not being able to install or encountering issues when using applications and software.

The three points mentioned above are Intel's prominent strengths in this game.

As you mentioned, Intel's production lines operate according to standardized global processes. So, when faced with supply chain disruptions, caused by geopolitical factors for instance, how has Intel addressed these challenges globally and specifically in Vietnam?

At Intel, we believe in the need for a resilient and geographically balanced supply chain. This was evident during the pandemic. Our future plans will continue with the expansion of our supply chain across the globe.

I believe this will bring several advantages. Firstly, Intel will not be dependent on any single location. Secondly, we can leverage the different strengths of each country. We all know that the digitalization process is happening rapidly and powerfully. Our customers are not limited to one or two countries but are spread worldwide.

Therefore, the spread-out model will help us optimize costs and better understand the needs of local customers to provide suitable products. Additionally, in the current inflationary situation, maximizing the advantages of each factory also supports us significantly.

Furthermore, Intel Vietnam has a network of local suppliers with over 200 companies. Thanks to this network, we can ensure that operations and production are not affected by external factors.

Amidst the AI wave, the issue of protecting consumer privacy is of great concern. Do AI PCs prioritize the protection of consumer rights and privacy?

Traditionally, when mentioning AI, people envision uploading personal information to cloud platforms, such as ChatGPT, for processing. With the upcoming AI PCs equipped with Core Ultra Lunar Lake processors, tasks and information will be processed directly on the device thanks to the presence of the NPU. Therefore, users won't need to worry about security issues.

The Vietnamese government is currently very concerned about security issues. Is Intel collaborating or providing services in this area? For example, in the field of digital government and security?

We and our partners always work closely to provide appropriate solutions to meet the needs of government agencies. Currently, we offer solutions for 5G connectivity, AI, enterprise PCs, cloud computing, data center solutions, edge computing, high-performance computing, and more.

Combined with our extensive partner ecosystem, we can tailor solutions to the specific needs of government agencies.