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Intel is trying to regain a dominant position in the processor market – but will delivery problems smother them?


Intel seems to dislike AMD's dominance in the desktop processor segment we've seen in the past few months, and CEO Bob Xuan confirmed in recent reports and profit sharing that Intel will "invest to restore its processor position in the future "And that he expects to release their first 7 nm products by the third quarter of 2021, which AMD has already released with its AMD Ryzen 3000 processors and Navi video cards.

While Intel is moving to the transition from 14 nm to 10 nm, the competitor AMD has already sold the ultra-efficient 7 nm processor AMD Ryzen 9 3900X, which according to the advertisement has "extremely high performance at extremely low TDP".

In the past, Intel admitted that by 2021 it would not catch up with AMD production up to 7 nm, but at the time insisted that its 10 nm process be comparable to the 7 nm AMD process. This may be the case, but it seems that Intel no longer wants AMD to be a market leader.

Xuan also revealed that he would return to the two-year development cycle, as in the tick model used in 2007-2016.

What does the tick model mean?

The "tick-tick" model meant that Intel first worked on new microtechnics (ticks), and then, about a year to 18 months later, by an innovative company in the field of cost-cutting technologies (ticks) that improved and optimized microarchitecture.

This model has helped Intel maintain its leading position over the years, but in 2016 the company changed its model to process, architecture and optimization, essentially adding the third stage of the cycle.

Xuan commented on this in the invitation to profit on Intel's performance in the third quarter of 2019, noting that it was "the best quarter in our company's history," and Intel generated $ 19.2 billion in revenue.

Intel's new data-based and cloud-based business model focuses on the concept of the Internet of Things (IoT), so good results come mainly from.

However, traditional PC-oriented Intel business shrunk by 5% year-on-year, meeting previous expectations after the end of the second quarter earlier this year. As the company hoped at the time, the demand for new Ice Lake 10 nm processors helped offset this decline – Intel will flood the mobile market with over 30 models by the end of 2019. We hope that this will have a positive impact on the results of the fourth quarter of 2019.

During the earnings conversation, it was also revealed that Intel is still having shipping issues with 14 nm processors.

"We're working hard to restore supply and demand. But we expect them to remain profitable even in the fourth quarter, "Xuan admits.

Intel hopes to meet needs by 2020, increasing its production capacity to 14 nm systems.

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