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How did AMD beat Intel after 53 years? (May 17)

In 2022, AMD accomplished market cap history when it finally beat Intel. The market for computer processors has long been dominated by Intel, but AMD has risen to prominence by entering brand-new markets. AMD acquired adaptive chip maker Xilinx in February for $49 billion, making it one of the largest semiconductor purchases in history. These days, AMD CPUs may be found in two Tesla vehicles, the Mars Perseverance lander from NASA, 5G cell towers, and the fastest supercomputer in the world.

A group of eight people founded AMD in 1969, with Jerry Sanders at the helm. One of the key contributors to the field of integrated circuits was Fairchild Semiconductor, where Sanders, known for his vibrant marketing strategies, was previously employed. The cost of chip development has significantly risen over time due to technological progress.

hq720 jpg How did AMD beat Intel after 53 years? (May 17)

AMD now just designs and tests chips; it has no fabrication facilities. By the 1980s, AMD was one of Intel’s secondary suppliers. AMD reverse-engineered Intel CPUs to create its own devices that were functional with Intel’s ground-breaking x86 software after AMD and Intel split. Intel sued AMD, but a 1995 deal allowed AMD to keep creating x86 chips, lowering the cost of personal computers for customers.

For $5.4 billion, AMD acquired the significant fabless semiconductor maker ATI in 2006. Then, in 2009, AMD completely separated its manufacturing division, becoming GlobalFoundries. GlobalFoundries became publicly listed in 2021 and is still a leading manufacturer of less sophisticated chips used in less complex parts. However, it stopped producing cutting-edge chips in 2018. The most cutting-edge chips from AMD are currently all produced by Taiwan Semiconductor Manufacturing Co. for those purposes.

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When it comes to creating the most cutting-edge microprocessors, AMD only has significant competition from two other businesses: Nvidia for GPUs and Intel for CPUs. Although AMD has a far smaller market share than Intel and Nvidia in the respective categories of CPUs and GPUs, it has made significant progress since leaving the manufacturing sector and cutting costs. The Zen series of CPUs from AMD, which debuted in 2017, is frequently credited with the company’s recent success. It’s her favourite product, Su said to CNBC. Analysts claim that it also prevented AMD from going bankrupt.

How did AMD beat Intel after 53 years?

AMD’s EPYC line of CPUs made enormous strides in the data center market. This month’s newest, Genoa, was released. Oracle, Google Cloud, AWS, IBM, and Microsoft Azure are a few of AMD’s data center clients. Between 2017 and 2021, AMD’s revenue increased by more than threefold, from 5.3 billion USD to over 16 billion USD.

During that period, Intel’s annual sales climbed by around 25%, rising from roughly $63 billion in 2017 to $79 billion in 2018. Many praise Su, who became CEO in 2014, with AMD’s success in catching up to Intel’s technological advancements. Since then, AMD’s staff base has more than tripled. Su received three of the highest awards in the semiconductor business and was ranked as Fortune’s #2 Business Person of the Year in 2020.

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How did AMD beat Intel after 53 years?

She also acts on President Joe Biden’s Council of Advisors on Science and Technology, which worked tirelessly to enact the CHIPS Act recently. It sets aside $52 billion for American businesses to produce chips domestically rather than elsewhere. The chip scarcity emphasized the issues of offshore dependence, particularly in light of the ongoing hostility between Taiwan and China.

All of the most cutting-edge semiconductors in the world are currently produced in Asia. The Biden administration just imposed significant new export restrictions on semiconductors to China. About 3,000 AMD personnel work there, and 25% of its revenues last year went to China. Su claims that the revenue impact was minor.

FAQs

  1. Is AMD giving a big competition to Intel?

    Yes!!!Since AMD emerged as a major player in the processor game, the question of which CPU to buy has come down to AMD vs. Intel, with the AMD Ryzen series giving Intel a serious run for their money. Tough competition means more choice than ever, so here’s how to find the best CPU for your needs.

  2. What does AMD’s success mean for the semiconductor industry?

    AMD’s success in beating Intel signifies increased competition and innovation in the semiconductor industry, which benefits consumers through better products, lower prices, and technological advancements. It also underscores the importance of choice and diversity in the market ecosystem.

  3. Was competition from other chip manufacturers a factor in AMD’s success against Intel?

    While competition from other chip manufacturers, such as ARM-based processors and emerging players in the semiconductor industry, may have influenced market dynamics, AMD’s success against Intel was primarily driven by its own product innovations and strategic initiatives.

  4. What does AMD’s success mean for the future of the CPU market and competition with Intel?

    AMD’s success has reshaped the CPU market, fostering increased competition, innovation, and choice for consumers. Moving forward, both AMD and Intel are expected to continue investing in R&D, driving technological advancements, and vying for market share in the evolving computing landscape.

  5. How did AMD’s CEO, Lisa Su, contribute to the company’s success?

    Lisa Su’s leadership and vision played a pivotal role in AMD’s turnaround, emphasizing innovation, customer-centricity, and execution excellence, and driving strategic initiatives that revitalized the company’s product portfolio and market position.

  6. Did Intel face challenges or setbacks that contributed to AMD’s success?

    Yes, Intel faced challenges such as delays in its own product roadmap, manufacturing issues, and security vulnerabilities in its processors, which provided opportunities for AMD to gain market share.

  7. Did AMD benefit from any specific market trends

    Yes, AMD benefited from market trends such as the increasing demand for high-performance computing, growth in gaming and content creation markets, and the transition to cloud-based infrastructure, which favored AMD’s competitive offerings.

  8. How did AMD’s chip architecture help it succeed?

    AMD’s Zen architecture, introduced with the Ryzen processors, brought significant improvements in instructions per clock (IPC), better power efficiency, and scalability which were crucial for both consumer and server markets.

  9. How did AMD’s partnerships contribute to its success?

    Collaborations with companies like TSMC for manufacturing and partnerships with major PC manufacturers helped AMD expand its market reach and increase brand visibility.

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