AMD Losing More Ground Against Intel

November 29th, 2007 - 2:47 am ICT by admin  

Move over AMD. Sony and Toshiba have bumped you off the top-10 list — and Intel remains king of the chipmakers. According to iSuppli’s preliminary 2007 global semiconductor market share estimate, Intel is the top of the heap. Intel’s chip revenue is expected to rise 7.7 percent in 2007 to reach $33.97 billion, up from $31.5 billion in 2006.

Intel exceeded the overall semiconductor industry growth rate of 4.1 percent in 2007 and massively outperformed its PC microprocessor rival AMD, whose sales are expected to decline by 22.7 percent for the year.

“Throughout most of the year, Intel successfully defended much of the market share that it won from AMD in the first quarter in the PC microprocessor segment due to the success of its lines of dual- and quad-core chips,” Dale Ford, vice president of market intelligence for iSuppli, said in a statement. “This represents a major reversal of fortune compared to 2006, when AMD had the advantage with its popular dual-core microprocessors, allowing it to gain share from Intel.”

AMD’s Woes

Intel’s market share rose to 12.5 percent in 2007, up from 12.1 percent in 2006.
After rising into the top 10 rankings for the first time ever last year, AMD’s revenue decline is expected to cause it to drop back to 11th place in 2007, down from eighth place in 2006. AMD’s semiconductor revenue in 2007 is set to fall to $5.8 billion, down from $7.5 billion in 2006.

The root of the issue might be AMD’s quad-core bets. AMD took a fundamentally different approach to quad-core development than Intel. While Intel pressed forward into the quad-core market by combining two dual-core chips on a single piece of silicon, AMD focused on developing what it calls a native quad-core.

“Intel got a nearly yearlong jump on the quad-core market when AMD slipped its delivery…

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