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How did AMD become the leader of the processor industry, leaving even Intel behind?

  • August 11, 2024
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Used in computers, data centers and game consoles AMD, one of the names behind processors, The processor industry has undergone a major transformation in recent years. Well AMD,

Used in computers, data centers and game consoles AMD, one of the names behind processors, The processor industry has undergone a major transformation in recent years.

Well AMD, its incredible success What does he owe?

First, it is useful to compare the market values ​​of the sectors:

*Yellow color stands for AMD, blue color stands for Intel.

With the arrival of CEO Lisa Su in 2014, the company has made a huge leap forward, especially in recent years. 5G on base stations and Mars Land Rover The use of its chips in the reconnaissance vehicle significantly increased its value in the sector, allowing it to surpass Intel.

Market value of the company according to current data (August 2024) While it was $214 billion 513 million 336 thousand; Intel is worth $90 billion, 397 million, 390 thousand. What do you think AMD owes this leap to? The following projects explain why.

Now let’s look at how the company achieved this: AMD was founded in 1969 by Jerry Sanders and his seven co-founders.

It launched its first products in 1970 and went public in 1972. AMD parted ways with Intel in the 1980s. It started producing its own products by reverse engineering Intel’s chips and increasing competition in the PC market.

In 1995, a long legal battle with Intel ended with a lawsuit in which AMD acquired the right to design x86 processors. During this period, AMD production of the first 1 gigahertz processor and the launch of the 1 teraflop GPU cemented the company’s place in the industry.

The appointment of Lisa Su as CEO in 2014 was a turning point for AMD.

Under Su’s leadership, AMD continues to develop next-generation chips such as data centers, game consoles, industrial applications began to spread to areas. With Zen series processors, AMD achieved a major performance improvement, closing the gap with Intel.

With its Zen processors, AMD has won important customers in the data center market: Amazon AWS, Google Cloud, Oracle, IBM and Microsoft Azure. Zen processors, released in 2017, accelerated AMD’s technological development and led to the company’s rebirth.

AMD in 2009 the separation of the production branch He founded GlobalFoundries and focused on design instead of chip manufacturing. The change in strategy allowed AMD to operate more efficiently and focus on innovation.

AMD to produce its most advanced chips Taiwan Semiconductor Manufacturing Company (TSMC) works with. TSMC produces 90% of the world’s most advanced chips and all of AMD’s advanced chips. AMD thus uses its resources more efficiently by reducing costs.

AMD uses its chips not only in computers and game consoles, but also in many areas such as Tesla models, 5G base stations, Mars Land Rover and supercomputers.

AMD in 2022, By acquiring Xilinx for $49 billion has taken a major step forward in the field of reprogrammable chips (FPGA). This move helped AMD expand its product line and strengthen its presence in various industries.

Today, in addition to x86 chip architecture, AMD It also competes with the ARM architecture. Lisa Su, the company’s CEO, says both x86 and ARM architectures will continue to play an important role in the future.

According to analysts, AMD’s performance improvements and investments in new business areas will put the company in an even stronger position going forward. Company, consolidate his place and continues to make major investments to seize future opportunities.

Sources: CNBC, CNBC 2

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