AMD versus Intel – The Microprocessor Market

AMD versus Intel – The Microprocessor Market

AMD versus Intel-Microprocessor market

AMD versus Intel-Microprocessor market

The semiconductor industry is arguably a major technology driver that has continuously induced innovation in diverse industry sectors due to intense competition. The products of the semiconductor industry particularly microprocessors have enabled the development of high performance computers, industrial as well as household equipments, consumer electronics and mobile devices. The microprocessor is generally referred to as the central processing unit (CPU). It consists of a silicon chip holding a series of transistors together with other components and controls the central processing function of the computer and other devices in which it is employed.

The first CPU was developed by Ted Hoff, Stanley Mazor and Federico Faggin for the Japanese firm Busicom. Integrated Electronics (Intel), a semiconductor company founded in 1968, acquired the rights to produce the CPU and introduced the first commercial microprocessor the “4004” in 1971. The new computer era began, demand for microprocessors grew rapidly and Intel became the dominant supplier. The rate at which microprocessor performance grew could be defined by Moore’s law. Gordon E. Moore, one of the founders of Intel, observed in his 1965 paper that the number of transistors that can be placed inexpensively on an integrated circuit has doubled approximately every two years.

In 1975, Advanced Micro Devices (AMD), a company founded in 1969 introduced a reverse-engineered clone of the Intel 8080 microprocessor followed by a series of microprocessor elements. On IBM request and in agreement with Intel, AMD became a second supplier of Intel’s processors to IBM in 1982. The agreement was later cancelled by Intel resulting in dispute and legal battle, which gave AMD the rights to produce and sell Am386 microprocessor in 1991. Access to x86 (windows-compatible) processor architecture was opened to AMD to use and further develop thereby making AMD a true competitor to Intel. The competition between the two companies has driven each company to create strategies and implement incentives aimed at increasing market share. Intel still has a dominant market share but AMD has gained market share through its cheaper high performance processors such as the flagship Opteron. While Intel employs technology, finance and aggressive marketing, AMD combines innovation and customer-centric approach to gain competitive edge. The customer-centric approach of AMD forms the topic of this e-book analysis.

AMD versus Intel

AMD versus Intel

Download the e-book

Afritopic

You must be logged in to post a comment.

error: Content is protected !!