Intel Corporation.

INTC -1.05% INTC

The once dominant developer and manufacturer of the chips that form the basis of almost all personal applications and cloud computing has been inferior to its competitors for many years. It’s hardly a rag, the opposition now includes trillions of companies and countless start-ups, and it is well on its way to destroy Intel’s hegemony.

Apple Inc. recently announced the end of Intel chips in Mac computers, introduced in 2006, and the switch to proprietary processors. With less hassle, a long-term Intel partner

Microsoft Corporation.

Insert the user’s chip into the Surface Pro X tablet as an alternative to models using Intel chips. Google already uses

Qualcomm Inc.

QCOM -7.36%.

in the pixels of their phones and others from Intel in their Chromebooks, and seems to run on their own custom processors for both types of devices.

Samsung Electronics Co.

He has been designing his own chips for 20 years now, although he continues to work with Intel and Qualcomm.

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The new Apple M1 computer chip for Mac computers has been developed in-house.

Photo:

Danielle Aker/Bloomberg News

These efforts have a common need to be even more effective. This year, Apple made a big deal on power per watt. This is of course important for battery-powered devices, but it is also important for cloud computing, which currently accounts for 1% of the world’s electricity consumption. To meet these requirements, electronics manufacturers are increasingly opting for adaptable chips at the heart of their devices as engines designed specifically for the vehicle they are going to drive.

The market leader in custom chips is not a manufacturer, but a designer who applies the technology to virtually any mobile device and a growing number of laptops, desktops and cloud servers: Triggers. Based in Cambridge, UK, the company licenses its microchips to both technology giants and hardware start-ups, with a total of over 500 licenses. Arm already owns 90% of the market for processors for smartphones, tablets and laptops.

In addition to the long-term relationship with

Advanced Micro Devices Inc.

and Taiwanese

Through Tech,

Intel does not license other companies to design its chips so that they can create their own versions, let alone modify them. The company adapts its powerful Xeon processors for large customers such as Amazon.

Licensees can combine a different number of business cores, depending on their specific needs. For example, a customer wanting to develop a low-power environmental sensor to measure temperature could design a single-core chip, while an 8-core smartphone chip could balance performance and portability, and have a superfast cloud server processor of up to 96 cores, he says.

Renee hare,

Chairman of the Smart Manufacturing Group.

A small group of companies that have their own large and experienced chip design teams – Apple, Samsung, Qualcomm, and

Nvidia Corp.

Included – paid for a less common type of chip production license, designed by the customer inside, but compatible with Arm’s ecosystem because they use the same instructions. This computer lingua franca represents the most fundamental level at which a device’s software interacts with its hardware. The result is a vast ecosystem of companies that all speak the language of treating the poor.

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Microsoft Product Manager Panos Panay demonstrates the Surface Pro X hybrid tablet.

Photo:

Mark Kauslarich/Bloomberg News

The Intel instruction set, known as x86, was originally developed to achieve the highest possible speeds, and power consumption was given a lower priority than raw power consumption. Originally, Arm developed mobile chips and considered low power consumption essential. At this point, the distinction is blurred: The instruction set of the weapon has become almost as large and complex as Intel’s, because Intel has worked hard to develop powerful chips with greater efficiency, says Andy Huang, an experienced engineer and consultant for chip designers.

While competition between the two companies is now as much about customization as it is about speed, references for the new Apple M1 chips for MacBooks built with Arm’s instruction set can be very fast. In fact, the world’s fastest supercomputer now runs on weapons technology chips produced by Fujitsu Ltd.

Intel can hardly be blamed for not wanting to fire its crown jewels, as Arm does, because it has long believed that its competitive advantage lies in controlling production with multi-billion-dollar chip factories. But, as my colleague Asa Fitch recently studied in detail, he had problems meeting his own production targets, even though his competitors had made progress. Device manufacturers can now buy the best customized chips, and the most advanced technology is no longer owned by Intel, but by competitors who actually produce chips (mainly weapon chips).

The Taiwanese semiconductor manufacturer.

in Taiwan and Samsung in South Korea.

Other opponents are also gaining ground within Intel. Nvidia, which dominates the advanced graphics and artificial intelligence markets and is now the largest chip manufacturer in the United States by market capitalization, has agreed to acquire Arm Holdings from

SoftBank Group Corporation Corp.

for $40 billion in cash and shares is the biggest deal in the industry today if it’s controlled by regulation.

In 2006,

Steve Jobs

has announced that Apple will switch to Intel because

IBM,

the chip maker Apple at the time, couldn’t keep up. For more than a decade, Intel has outperformed the rest of the industry in the performance and efficiency of PC and server chips.

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Steve Jobs, CEO of Apple, and Paul Otellini, CEO of Intel, dressed in a lab coat, announced the historic transition from Apple chips to Intel chips in 2006. For more than a decade, Intel has outperformed the rest of the industry in the performance and efficiency of PC and server chips.

Photo:

Paul Sakuma/ASSOCIATE PRESSURE

Around the same time, Intel made a fatal mistake: CHAIRMAN OF THE BOARD

Paul Otellini

rejected Apple’s request to Intel to produce a chip to power the iPhone. Apple has started working on its own chip based on the arm architecture, first published in 2010, which exchanges the iPhone 4. As the rest of the emerging mobile industry is already arming itself, the shift from arm to domination has taken place.

Without the smartphone revolution, Intel would still dominate the processor market, said Patrick Moorhead, president of technology research firm Moor Insights & Strategy. Today, large electronics companies like Apple and Samsung can buy custom chips that cost as much or less than Intel and perform as well or better, he adds.

This battle – between Intel’s vertically integrated approach and Arm’s more flexible strategy – has also spread to the clouds, or rather to the terrestrial data centers that manage the system. Amazon Web Services, the largest cloud computing provider, now offers access to servers running on its own chip, which is reported to offer 40% faster performance for cloud applications than Intel chips and 20% less cost.

Despite all this competition, demand for Intel cloud server chips has not decreased. The company’s revenues for the 12-month period ending September 2020 increased by 11% compared to the previous year to $78.1 billion. In this period Intel grew faster than in previous years due to the increased demand for PCs and servers during the pandemic. And it has tried to use the momentum it has not yet developed in new enterprises, including advanced graphics, artificial intelligence training, 5G networking and offline driving. The CEO of Intel

Robert Swan

has repeatedly stated that the company should no longer focus on dominating the PC and server market but should aim to capture 30 % of the total amount of silicon.

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RISC-V core.

Photo:

Micro Magic, Inc.

In the meantime, the hand cannot calm down if it wants to expand its sphere of influence. Just as he has been able to attract Intel customers with the promise of more cost-effective customization and production capabilities, the next newcomer may come with his own more promising offering. One of its competitors is the RISC-V chip architecture, which was incubated at the University of California, Berkeley. The simplified design has recently proved promising in the now crucial measure of power per watt, but perhaps its greatest advantage is that it is open source. This means that any company can use the RISC-V instruction set without paying a license fee as required by Arm.

The Chinese technology giant Alibaba has released an open-source RISC-V chip that is of interest to other Chinese companies that encountered obstacles during the Trump administration to acquiring Western technology and intellectual property.

At the same time, it depends on Intel’s ability to continue to grow, to catch up in the production process. Even if Intel’s various bets do not work, the momentum created by a huge ecosystem of partners will certainly help Intel to remain relevant for years to come. And as the demand for converters in each tyre is growing rapidly, it can be difficult for even the most aggressive competitors to meet demand with sufficient supply to package the product completely.

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Write to Christopher Mimes at [email protected]

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