Why Intel is having a tough time against AMD

Why Intel is having a tough time against AMD?

When introduced their ZEN architecture to the public. We knew what we could expect that team read finally to become a serious competitor to Intel again. Let’s explore how Intel has started to struggle against humongous AMD. In fact, from late 2017 to late 2018, AMD’s market share has increased by 3.8 per cent on desktop, 3.4 per cent in servers, and 5.2 per cent in notebooks. It seemed that Intel is the player in all of these markets. Anything that AMD gains reflect a loss for Intel. But, why exactly is this happening?

For a very long time, AMD was forced into a strategy of competing on raw price to performance. As for a long time, they simply couldn’t make any chips that could compete with most of the performance of Intel’s offerings. As a result, this forces them to cut prices. Intel by control to point anywhere, charge whatever they want to. As they didn’t have any real competition at the higher end. Furthermore, this allows them to make much more margin. However, all of this changed with AMD’s new Zen architecture.

Although Ryzen falls a bit behind Intel in some performance metrics notably in gaming. AMD having spent so many years operating on lower margins took a fundamentally different approach to their CPU design. This worked really well for them. To save R&D, they opted for a modular design that can be scaled up and down more easily. For their higher-end many products, they even used multiple smaller chiplets to decrease manufacturing waste. This along with aggressively low pricing started to eat into Intel’s dominance.

In fact, it turns our users are happy to give up a small amount of performance for a significant cost saving. However, AMD is making a decent processor for a change and pricing it competitively. it only a part of the complete story. Intel also had their own public issues transitioning to its 10nm manufacturing process.

Now according to their original road map, they should have finished it years ago. However, they still have a few 10 Nanometre chips on the market. But what is that matters? Here is a thing whenever you hear CPU efficiency that talks about a certain number of nanometres. They are referring to the transistor size on the CPU dye. Smaller transistors mean that more of them can be packed into a given area, increasing performance as well as power efficiency. This means that it is very helpful to make your CPUs on a smaller node. On one hand, AMD hasn’t had many issues getting their transistors to small sizes.

On the other hand, Intel has struggled. Unlike AMD, contracts of fabrication work that specializes in manufacturing different kinds of processors for a variety of clients. Intel worked on their on Fab is more or less trying to figure everything out on their own.

Why Intel is having a difficult time against AMD?

This also helps to remember for some time now. Intel’s transistor’s density has often been higher than that of AMD. As numbers like 14nm and 10nm are actually just estimations. Some 10nm Intel chips might actually have a distance closer to 8 or so nanometres between transistors. This makes further shrinkages even more challenging. Thus, Intel has spent about the last 4 years trying to squeeze more from their 14nm or plus processors with only small incremental improvements.

  • Why Intel is having a tough time against AMD?
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