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How Intel Is Gearing Up to Compete with AMD in the CPU Market

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Intel to grow in the CPU market

On April 2, Intel (INTC), the largest maker of computer processors, launched 90 different versions of the Xeon processor including the Xeon Platinum 9200, which will have 56 processing cores. The launch of Xeon processors for its Xeon server CPU franchise comes amid competition from rival Advanced Micro Devices (AMD) and signals that the company aims to maintain its dominance and expand in the server chips market, which is one of the most profitable segments of the semiconductor industry.

Also, the new server chips may be able to reassure Intel’s customers such as Amazon (AMZN), Alphabet’s (GOOGL) Google, and Microsoft (MSFT) that Intel products have the potential to deliver improved performance to meet customers’ evolving needs.

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Intel’s competition with AMD

Intel has been the industry leader in the CPU market for several years. However, its market share has started declining as it began to face manufacturing issues related to the production of its 10-nm (nanometer) node in October 2018.

On the other hand, AMD is catching up in the CPU market and has plans to launch its second-gen Epyc server CPUs in mid-2019. AMD’s chips will rely on a 7-nm node from Taiwan Semiconductor’s (TSM) manufacturing process. AMD’s new chips are likely to threaten Intel’s position in the server CPU market. According to the CPU benchmarks, the market share of Intel is declining, while AMD’s market share is gaining momentum.

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