Intel CEO: Our market share is not lost to AMD, but to it!

Just a few years ago, Intel still occupies more than 90% of the x86 CPU market, but when Ryzen was released, the desktop market finally ushered in a historic change. At this time, AMD is no longer a tasteless endorsement, at least it can follow Intel’s battle is up and down. Former Intel CEO Bob Swan also admitted frankly that focusing on 90% of the CPU market share was one of the reasons why Intel missed the transition, and said that he was not interested in defending its title of CPU champion and would give the market to AMD.

Since Intel’s new CEO Pat Kissinger took office, he has put forward the IDM 2.0 plan, returning to the engineering and technical route, and has also made a counterattack in the face of the increasingly fierce attack of rival AMD in recent years.

Intel CEO: Our market share is given to AMD!

In all respects, AMD has returned to the game with its Zen architecture, and has made significant progress especially in Zen 3. From desktops (Ryzen) to data centers (EPYC), AMD has always occupied a place among its competitors, sometimes even claiming to be the performance champion. Nevertheless, Intel CEO Pat Kissinger has very interesting views on Intel’s loss of market share and AMD’s growth.

At the 25th Credit Suisse Technology Conference, someone asked Kissinger a question about capital expenditures and Intel’s core business (the business is trying to make up for the shortage of supply and Intel’s large-scale investment in production capacity), Kissinger This said: “Our market share is not lost to AMD, but to it, because we have no production capacity. So this is largely just to catch up with our growing market and years of insufficient investment. “

The person who raised this question pointed out that Intel’s investment seems to be driven by a “seemingly aggressive demand curve” and that if Intel’s forecast is inaccurate, profit margins may be affected.

From Kissinger’s point of view, he said that Intel “ceded” some CPU shares to AMD because it did not have enough capacity to meet demand. The subtext of this sentence is that part of AMD’s revenue is only generated under specific circumstances and opportunities, and it is not because they have better products that consumers “hope”.

Is Kissinger’s explanation true?

Kissinger’s statement may have some truth. For some consumers, it was indeed because Intel could not meet their own needs that they chose to buy AMD hardware. Obviously, this is not the only reason, even the biggest reason. Can’t be called.

Intel’s inability to meet the needs of some consumers has become a thorny issue. After all, what is suitable for one market segment may not necessarily be transformed into another segment. For example, from a consumer’s point of view, the Ryzen 5000 series based on Zen 3 is a good choice.

With a high core and thread count, coupled with a mature platform, a long-lived socket (AM4), and the combination with cutting-edge technology (such as PCIe 4.0), Zen 3 is very attractive. In addition, Zen 3 will launch an update, which also makes AMD more popular among home consumers.

AMD’s market share has achieved the largest continuous growth in 15 years

Although Intel’s business and data center market share gains and losses cannot be measured, it is known from the earnings report that Intel’s financial (and overall) performance in these areas is actually very good. Even so, it is worth noting that EPYC has enabled AMD to achieve the largest continuous growth in data center market share in 15 years.

Earlier this year, AMD CEO Dr. Lisa Su said in a statement: “The revenue of all AMD businesses has increased significantly year-on-year, especially the data center revenue has more than doubled.” He mentioned that due to increasing adoption With more high-performance computing products and expanding customer relationships, the company has improved its annual performance indicators, which is also in line with the company’s strong growth expectations for the entire business.

Intel will not have idle capacity

Regarding the topic of Intel’s investment exceeding production capacity, Kissinger stated that there will be no idle production capacity next year or even the next few years. Even if it comes to this in 2025 or 2026, Kissinger will not worry about it.

He said that by 2025 and 2026, there are three uses that can use these idle capacity. One is to gain more market share. If there is a leading product, he will use profit margins to regain market share. Second, Intel has established a business model for foundries and external foundries. If the capacity is too large, he will extract the wafers from an external foundry. Third, he will strive for more foundry customers.

This is definitely an interesting point.

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