The production gap between Advanced Micro Devices (AMD) and Intel is expected to narrow this year. AMD made the decision to stop making its own chips in 2009, allowing it to focus on chip design and utilize third-party foundry manufacturing services. However, Intel had the best manufacturing technology in the industry until recently.
About five years ago, Intel’s delays and issues with its 10-nanometer process node allowed AMD to gain an advantage. By using TSMC for manufacturing, AMD was able to offer more advanced process nodes than Intel. As a result, AMD has gained market share in both the PC CPU and server CPU markets.
Intel is now preparing for a comeback in the manufacturing industry. The company is outsourcing manufacturing to TSMC for its Lunar Lake Mobile Processors, which will use the same process node as AMD’s upcoming Ryzen AI laptop chips. Additionally, Intel is working towards becoming the world’s second-largest foundry by 2030.
With Intel closing the manufacturing gap, AMD’s advantage in manufacturing may disappear. Furthermore, competition in the PC CPU market is increasing, with Microsoft and Arm CPUs gaining popularity. Intel is working with Arm to optimize its processes for Arm-based chips, potentially leading to more competition in the future.
In conclusion, the production gap between AMD and Intel is expected to narrow this year as Intel makes advancements in manufacturing technology. With increased competition and Intel’s efforts to close the gap, AMD may struggle to maintain its market share gains in the future.
Article Source
https://www.fool.com/investing/2024/07/07/amds-key-advantage-over-intel-is-set-to-vanish/