Advanced Micro Devices Inc (AMD), the world's second-largest maker of computer microprocessors, began selling new graphics chips and announced plans to challenge Intel Corp with a redesigned desktop processor.
The company started selling 10 new graphics processors for personal computers yesterday, updating a product line that has lost market share to Nvidia Corp. The new processor for desktop computers, called Phenom, will go on sale in the second half, said Stephen DiFranco, an AMD vice president, at a presentation in San Francisco.
The company is refreshing its products to try to win back sales from its bigger rivals. Intel, the world's largest semiconductor maker, and Nvidia, the second-biggest producer of graphics chips behind Intel, have lured away customers with new chips. That's contributed to two money-losing quarters at Sunnyvale, California-based AMD.
"Intel's been pretty aggressive," said Roger Kay, an analyst at Endpoint Technologies in Wayland, Massachussetts. "AMD is basically on the ropes and fighting back."
AMD reported a US$611 million first-quarter loss last month after Santa Clara, California-based Intel took 6 percentage points of PC processor market share. Nvidia, also based in Santa Clara, said its sales jumped 24 percent in the first quarter and reported profits that beat estimates.
Nvidia released chips last year that are compatible with Microsoft Corp's latest graphics software, helping it win sales. AMD is adding that same capability to its new chips.
"We'll have the best performance at each price point," said Rick Bergman, AMD's vice president of graphics.
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to