Intel and AMD Join Forces to Combat ARM's Dominance

They need to do something with their vintage x-86 architecture

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Oct 16, 2024
Summary
  • Intel and AMD will improve their compatibility and the advisory group that consist of tech companies will give them feedback.
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Oct. 16, 2024 - Today Intel (INTC, Financial) and AMD (AMD, Financial) decided to team up in response to the rising challenge from ARM Holdings in the semiconductor industry. This collaboration will improve software compatibility across their x86-based chips in response to escalating performance of ARM holdings (ARM, Financial) that erode the market share of both companies.

The x86 architecture is the dominant computing architecture used in laptops, PCs, and data center servers. Intel invented it, and AMD licensed it. Then suddenly ARM came with its computing architecture and presented a competition to both companies by successfully partnering with important clients like Apple (AAPL, Financial), Qualcomm (QCOM, Financial), Amazon (AMZN, Financial), Microsoft (MSFT, Financial), and Alphabet (GOOG, Financial).

ARM has gained market share due to its energy efficiency and software compatibility. Intel and AMD can't just sit back and watch, they need to do something.

Intel and AMD decided to team up and improve their quality by addressing the same issue they face: compatibility. Intel and AMD use the same x86 architecture but their chips may require software tweaks to work seamlessly together. So, to address this issue, Intel and AMD made an “advisory group” that consists of leading industry players such as Broadcom, Dell Technologies, Lenovo Group, and Oracle to ensure consistency and compatibility across their chips. So the plan is: Intel and AMD will improve their compatibility and the advisory group will give them feedback.

Recently, Intel's CEO Pat Gelsinger stressed that x86 remains very active in the modern world of computing and has great potential for its development in the context of AI. He further stated that scalability has been a unique selling proposition of the architecture stating that x86 still has serious prospects of further advancement.

ARM Holdings has significantly impacted the semiconductor industry, particularly in the mobile and embedded markets by its architecture that has eroded the market share of traditional x86 giants like Intel and AMD. Here's why:

  1. Energy Efficiency: Energy efficiency is the power that ARM possesses that Intel and AMD have struggled with. The architecture is ideal for mobile devices like smartphones and tablets and has high compatibility for embedded systems like IoT devices like smartwatches, and automotive electronics.
  2. Licensing Model: AMR's licensing model provides broader flexibility for the clients compared to the traditional way of purchasing chips from Intel or AMD.
  3. Ecosystem and Software: ARM's architecture gains support from the open-source communities as they build a robust ecosystem that attracts developers and encourages the creation of applications and solutions specifically for ARM-based platforms. So the support not only comes from the employees but also from the technology community they built.
  4. Market Penetration: After successfully penetrating the mobile device market, ARM expanded to other markets like data centers and servers too.

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