Advanced Micro Devices Inc (AMD)

[P2O I'm from MO]

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Editor's Note: Chip Wars Flare Up

For as long as I can remember there has been a drama being played
out in the semiconductor arena. It's called "Intel Vs. AMD."
There have been many chapters to the saga. When I was an editor
at the now-defunct Electronic Buyers News, it was always
interesting (fun, even) to see what Jerry Sanders, founder of
AMD, would say next about his competition. More often than not,
the target for his remarks was Intel.

Back then, purchasers showed a clear preference for Intel
product. By and large, Intel was the tried and true, and AMD was
used largely if the buyer's imperative was to cut costs. AMD
always claimed it stacked up technologically, but, generally
speaking, purchasers bought it to save money, not for its speed.
But those cost-conscious buyers were pleasantly surprised with
the chips' performance. And they told two friends, and they told
two friends, and so on. The marketplace evolved. In fact, in our
recent Server Pipeline poll, "When you buy new server hardware,
which CPU manufacturer's products do you prefer?" 46% of the 412
respondents said, "AMD." (41% said "Intel," while 3% said
"Other.") So there is definitely momentum behind the company. And
so this new installment in the "Intel Vs. AMD" series could be
called, "Goliath Strikes Back." For indeed, the chip-making giant
is on the defensive here, and you've got to think those in the
AMD camp are loving it.

The market has embraced AMD's dual-core strategy: the placement
of two complete CPUs on a single semiconductor die. Acceptance of
the Opteron processor for servers has been high. AMD is currently
set to ship dual-core server processors to the market in mid-2005
and high-end client PC processors in the second half of 2005.
(Note: IBM has been in the dual-core biz since 2001, but I guess
it just wasn't sexy enough back then for either Intel or AMD.)

Meanwhile, Intel is quickly and nimbly playing catch-up. Last
month, the company said it would pick up its pace regarding its
dual-core strategy, and start shipping them by next year. The
proof will be in the actual product performance, of course, and
Intel is hoping its Nocona Xeon processors will cause AMD to put
a sock in it.

That's unlikely. AMD has always relished the role of the
underdog. Its personality is that of the scrappy fighter, every
bit as good as the favored contender, but not afforded its
respect. We can predict how Intel will react in the coming
months; the company will come out with both guns blazing, no
doubt. And that is the twist in this chapter: How will AMD react
to being on the defensive for a change?
Until next Wednesday,

Jennifer Bosavage
Editor, Server Pipeline
[e-mail]
www.ServerPipeline.com