Intel has a cunning plan to stop AMD in its tracks

Date:
Tue, 14 Sep 2021 12:33:11 +0000

Description:
Intel has cut the price of its server CPUs to put AMD under pressure in a key market.

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Intel has reportedly cut the price of its range of server processors , in a move that appears designed to put pressure on its main rival, AMD.

AMD has made incredible headway in the CPU market in the last year, with data from workstation distributor Puget Systems placing the companys share at 60%, up from just 5% in June 2020. In the server chip market specifically, the company is said to hold 9.5% share, up 4% year-on-year.

However, AMD is currently limited by supply constraints that are preventing the firm from capitalizing fully on demand. Check out our list of the best small business servers around Here's our list of the best dedicated server hosting providers out there We've built a list of the best bare metal hosting services available

In a bid to capture clients who cannot afford to wait around for AMD to upgrade their server infrastructure, Intel is attempting to both undercut and out-supply its competitor. Intel's advantage

Unlike AMD, Intel is an integrated device manufacturer, which means the company both designs and manufactures its semiconductors in-house. While AMD (a fabless semiconductor firm) is reliant on TSMCs oversubscribed 7nm manufacturing process, Intel has much tighter control over its own supply.

Other factors include the massive revenue disparity between the two firms - Intel took in $77.9 billion in 2020, while AMD generated a comparatively
small $9.7 billion - and Intels more diverse collection of revenue streams. This financial firepower gives Intel the opportunity to tweak a greater
number of parameters that can lower the cost for end clients.

As it forges a fresh path under new CEO Pat Gelsinger, Intel will look to reinforce its position in the server market, which is of particular strategic importance given the friction involved in switching from infrastructure based on Intel CPUs to AMD CPUs, and vice-versa. In other words, once a customer is locked into the ecosystem, it would take a significant performance leap or price drop to incentivize a switch.

Of course, Intel will look to step on AMDs toes in the GPU market too, potentially in both a datacenter and consumer context. Intel Arc , the companys first line of discrete graphics cards, is set to create a major stir when it debuts early next year. Here's our list of the best mobile workstations right now

Via Tom's Hardware



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Link to news story: https://www.techradar.com/news/intel-has-a-cunning-plan-to-stop-amd-in-its-tra cks/


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