The world's IT giants are saying it loud and clear: it's time to invest in Romania. After Microsoft, Oracle and IBM, it's now Intel's turn to check out the opportunities provided by the local industry.
Intel, the world's largest computer chip manufacturer, is scouting the Romanian market for IT start-ups developing new technologies, and is ready to invest in these companies through Intel Capital, its investment arm.
"We identify businesses that will be successful or that will help to develop unexplored segments of the local market, and we provide financial support," Piotr Pagowski, Intel manager for Central and Eastern Europe told Ziarul Financiar. "We are aware that, in Romania, such funds are either inexistent or very small. If we discover new technologies, software or IT developers and we feel that they will be in demand, then we come up with the money," Pagowski added.
Financing is not all that Intel Capital offers to the selected companies - the IT giant also labours to find customers and provides counseling, as well. "This way, we can boost the local market and we can transform the entire economy of a country," the Intel official stated.
Intel is the world's leader on the market of computer components (desktops, laptops and servers), where it holds a global share of 83 percent (75% in Romania, according to IDC). The American company has recently begun to take notice of other markets, in a bid to strengthen its world supremacy.
Thus, Intel officials told the 3GSM show in Cannes that the company aimed to consolidate its position on the mobile phone segment (a $9 billion market), where it accounts for 20%. Also, according to Business Week, Intel is making a go for the flat-screen TV market ($10 billion annually), the handheld industry ($2 billion) and the personal multimedia players (music, films) - a market worth only 50 million dollars annually, for the time being. Moreover, WiFi technology aside, Intel is already working on the future's wireless technology, WiMax, a potential successor of WiFi.
According to Piotr Pagowski, Intel is set to open an official branch in Romania this year. "The market boomed last year and we feel the need to maintain a direct connection with our clients," he said. The Intel manager said the American computer chip manufacturer did not rule out the establishment of a production unit in Romania, but conceded this was not in the cards for the near future.
Intel spent $1.4 million in Romania last year, mainly to promote the products bearing the "Intel Inside" logo. "Sometimes, we bear up to 70% of the promotion costs for the products bearing the Intel logo," Pagowski said. Moreover, the company offers loans to its Romanian partners, with these funds having amounted to $2 million so far.
Intel has seen the number of Romanian partners double last year. "We now have 500 partners, up from only 300 early last year," Pagowski said. "I believe we sold some 210,000-220,000 computer chips in Romania last year," the Intel official added.
dan.dragomir@zf.ro
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