AMD will overthrow 'empire' Intel?

If you ask AMD's senior experts who are their rivals, there won't be anyone who mentioned Intel's name. AMD's unexpected confidence was confirmed in the statement of CEO Hector Ruiz when he interviewed BusinessWeek Online Magazine.

AMD currently accounts for 13% of the server chip market share and penetrates deeply into individual customer groups, not only gradually attracting the attention of corporate customers and government agencies. " We will take the market share that Intel has, " Hector Ruiz said.

Growth

The Sunnyvale, California-based chip maker this year has doubled the growth rate of the industry. AMD will continue to grow in 2006 when the company penetrates into corporate customers and targets high-end products in emerging markets such as China and India. As Roger Kay, Chairman of Computer Market Research Company Endpoint Technologies, ' AMD has overcome all obstacles and successes in terms of both value and product features '. In the third quarter of this year, AMD for the first time achieved sales of $ 1 billion. When the PC and server markets are expected to grow at double digits, AMD's growth period will continue.

The battle with Intel

Industry analysts and leading experts all have the same opinion that Opteron chips for AMD servers and chips are capable of overcoming the same products. Intel's performance is at least within a year. However, the expansion of AMD's market share will not be easy because Intel's number one chip manufacturer's products are too familiar to customers.

These two "big men" have been working on a retaliatory fight when they have all launched "new features" for their products. If AMD was the first company to introduce a 64-bit chip and also the first manufacturer to introduce a dual-core chip that allowed two chip cores to combine into one to increase performance and save energy, then In early November 2005, Intel responded by introducing a low-cost 65-nanometer microprocessor, along with retooling its company's production facility in Arizona.

However, when we take a closer look, we will see AMD for the first time in October 2005 overtaking Intel in terms of chip sales for desktop computers, in the context of a declining market. Meanwhile, Intel is still claiming a dominant position in notebooks with Centrino technology - which explains why Intel's margins are much higher than AMD's: $ 130 million profit that AMD has achieved. It was only in the third quarter of 2005 with Intel's one-day revenue.

Benefit from legal battles

The antitrust battle that AMD is pursuing with Intel has partly helped AMD achieve its goals. Government agencies and business customers are increasingly interested in using AMD technology and chips in desktop and laptop lines.

Even Dell, the world's largest PC maker, has considered using AMD chips for products that currently use only 100% of Intel products, witnessing competitors like HP. , Gateway, Lenovo earned higher profits from using AMD chips in parallel with Intel chips. However, according to Hector Ruiz, even if there are no big customers like Dell, AMD will also get 20% of the processor market share in the next few years.

Specifically, in 2006, the target of chip market share in AMD's commercial PC market will be 15%, up 5% from this year. AMD also plans to release a chip that competes with Intel's Viiv Entertainment-PC entertainment product, which is expected to hit the market next year at the same time as Microsoft's launch of Vista products.

Clearly, for decades since the first microprocessor was invented, this market has just emerged that a manufacturer can compete with Intel giant. However, it is not easy for an early afternoon that AMD can claim to be the number one company in chip technology.

Ba Lam