PC slowdown sets new battlefield for chip makers

Date:

After making remarkable moves, PC sales are expected to cool significantly this year.Ironically, it makes the market an even more important battlefield

Intel

When

Advanced Micro Devices..

The PC competition between the two chip makers dates back decades. However, it actually began to recover in 2018 after AMD began shipping processors manufactured on state-of-the-art production lines.

Taiwan TSMC,

Or TSMC.Or Brought advantage to AMD chips Compared to Intel’s, which had a hard time updating its manufacturing process. According to Mercury Research, AMD accounted for about 21% of the central processing unit chips sold for PCs in the third quarter of 2021, more than doubling the market share of 8% just four years ago.

Investor Mainly focused About the competition between the two companies in the fast-growing market for data center chips. However, PCs still make up the majority of both revenues. And this year, it can be a problem as the mature industry takes a breather following a pandemic-fueled, powerful run. IDC estimates that PC shipments increased nearly 12% in 2021 to reach 337.6 million units, up 13% year-on-year. However, market research firms predict that sales will be flat this year and will only increase by 1% in 2023. The industry average for the five years to 2020 was 265 million units per year.

Intel and AMD have the following PC chips Significantly reduced CES trade show last week. The latest products are primarily targeted at laptops and occupy about three-quarters of the PC market. Intel is the first laptop processor to roll off a new manufacturing process called “Intel 7”, and AMD’s new Ryzen chip will be built on TSMC’s 6-nanometer process. Analysts are mixed about which one has the better outlook. Jefferies’ Mark Lipacis hopes AMD will continue to gain market share from Intel. Meanwhile, New Street Research’s Pierre Ferragu hopes Intel’s new products will help chipmakers “regain their competitiveness.”

Neither can afford to fall below those numbers. Investors have raised AMD’s share price by 39% over the past 12 months, surpassing many other chip peers. Analysts expect much smaller chip makers to continue to deliver double-digit revenue growth over the next two years, following an estimated 65% surge in 2021. .. Intel, on the other hand, is desperate to stop the loss of market share given the need to maintain business and cash flow for multiple years.Turnaround plan to fill the gap With TSMC regarding manufacturing.

Another potential problem is that competing ARM-based processors

Appleof

A new Mac with an in-house designed chip.

Qualcomm

Announced that more than 200 enterprise customers are testing or deploying using their own CES presentation

Microsoft

A Windows-based device that uses the company’s ARM-based Snapdragon chip. Raymond James’s Chris Caso wrote that “PC makers need to be competitive with M1-powered Macs,” but the share of ARM processors such as Snapdragon was manufactured by both Intel and AMD. It comes at the expense of the x86 chip.

One thing is certain, even if growth is flat, the PC market will bring a lot of excitement this year.

Write in Danga Lager dan.gallagher@wsj.com

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PC slowdown sets new battlefield for chip makers

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