AMD Comes Back In Force As A Strong Rival To Intel

AMD's world-class GPUs, x86 licensing strategy and Zen chips could be keys for the company's revival as the strong competitor to Intel it once was. 

According to Info World, things just got more dynamic in the x86 server market since AMD announced its plans to license its top-of-the-line server processor to a Chinese joint venture. The newly formed company is called Tianjin Haiguang Advanced Technology Investment Co. Ltd. (THATI) and it is a joint venture between a consortium of public and private Chinese companies and AMD.

The new AMD initiative is creating a brand-new rival for Intel. AMD will provide all the technology required for THATIC to build a server chip, including the controllers, interconnects and CPUs. This way, THATIC will be able to develop variants of the x86 chips for more types of servers.

According to the same publication, Jim McGregor, principal analyst at Tirias Research, said that licensing the chip technology to other companies is rare in the industry, even in case of a joint venture. But because AMD is much smaller company than Intel, it could easily expand the installed base of its technology by using a licensing strategy. McGregor explained that in the process of licensing AMD will also generate revenue.

AMD may also license its x86 chip architecture and system-on-chip technology as well. The company is aiming to become again competitive with Intel. The deal with the Chinese joint venture company is a sign that AMD seeks to monetize its large portfolio of intellectual property, according to the president and principal analyst at Moor Insights and Strategy, Patrick Moorhead.

Moorhead said in an email that he expects more similar deals in areas AMD can't reach with their resources or platforms. Similar arrangements are expected also with AMD GPU technology.

At present, Intel dominates the PC and server markets and hasn't licensed its chip technology yet. According to PC World, the rivalry between Intel and AMD peaked during the first decade of the 2000s. Today AMD is barely a threat to Intel, but as early as next year the competitive landscape could start changing.

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