AMD Bets on Tri-Core Chips as Quad-Core Market Lags
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With the market for quad-core chips still in its infancy, Advance Micro Devices has an alternative that might help bridge the gap: tri-core chips. As a bonus, this strategy can't easily be imitated by Intel, AMD executives say.
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New Quad FX Platform gives Advanced Micro Devices an answer to Intel's quad-core PC chip, but in a piecemeal fashion.
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(InfoWorld) - As price competition takes its toll, AMD Thursday posted its third consecutive quarterly loss, saying that although revenue was relatively solid, it suffered a sharp second-quarter drop in income. Revenue for the quarter was $1.38 billion, an improvement from $1.22 billion a year earlier. But the company reported a net loss of $600 million, or a loss of $1.09 per share, a big drop from net income of $89 million, or $0.18 per share, a year earlier. A big part of the loss was due to restructuring costs and a $130 million, or $0.24 per share, charge related toÂ the acquisition of graphics-chip maker ATI last year. One piece of good news was that in the face of stiff price competition from Intel, AMD said its second quarter gross margin was 34 percent, excluding one-time charges, an improvement over its 31 percent margin in the first quarter of 2007. "We achieved a 12 percent sequential revenue increase, improved the gross margin, and won back microprocessor unit and revenue market share," said Robert J. Rivet, AMD's CFO, in a statement accompanying the company results. Looking ahead, AMD forecast that third-quarter revenue would increase in line with traditional seasonal growth rates. Though that does not point to a big increase in profit in the near future, traders reacted positively to the upbeat news on revenue and margins, driving up company shares by $0.32 to $15.78 in after-hours trading. Nevertheless, the second-quarter gross margin, for example, was still a far cry from AMD's 57 percent gross margin in the second quarter of 2006. Rivet acknowledged that to instill confidence in the company, "we must improve our financial results." AMD faces an uphill battle. After gaining ground, in terms of market share and technology, on Intel two years ago by coming out with dual-core processors, AMD suffered last year as Intel battled back with its own line of multicore chips. In the longer term, AMD is pinning its hopes to a great degree on its "Barcelona" quad-core Opteron server chip, due out in August. That chip will compete with Intel's dual-core "Woodcrest" and quad-core "Clovertown" Xeon processors launched last year. AMD also needs to stay on track and hit its 2009 goal to bring its new Fusion chip -- made with ATI technology -- to market.
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Second, 45nm generation to follow a year later Basic details have begun to filter through regarding AMD's three-core Phenom line-up, due to go on sale in Q1 2008.â¦
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SAN FRANCISCO - As expected, Advanced Micro Devices Inc.'s (AMD's) third-quarter revenue came in a little under the company's earlier predictions, but strong increases in sales of its 64-bit desktop and server processors led to the company's fourth straight profitable quarter.
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(InfoWorld) - Advanced Micro Devices (AMD) showed a laboratory version of its promised "Barcelona" quad-core Opteron 8000 server chip to analysts on Thursday, saying it planned to begin selling the product in the second quarter of 2007. AMDÂ will pitch the chip to users of high-end, commercial workstations and servers, who could see performance improvements of up to 70 percent in database applications and 40 percent in floating-point applications compared to AMD's dual-core "Rev F" Opteron. The demonstration Thursday, to analysts gathered in Berkeley, California, was AMD's second effort to show that it is keeping up with quad-core chips from rival Intel Corp. AMD also launched its "4x4" Quad FX Platform, a motherboard with two dual-core Athlon 64 FX-70 series chips intended for the desktop gaming market. Intel lost significant market share to AMD in 2006Â as it was criticized for being slow to produce chips that emphasized power efficiency instead of pure calculating speed. Intel hasÂ bounced back in recent monthsÂ with the launch of dual-core chips including the Core 2 Duo for desktops and Xeon 5100 "Woodcrest" for servers. On Nov. 14 Intel reached the market first with quad-core chips, with the Core 2 Extreme QX6700 for gamers and Xeon 5300 for servers. Intel has alsoÂ led the industry in converting its chip designsÂ from the 90-nanometer process to 65 nm, including all four processors mentioned above. In response, AMD has criticized Intel's quad-core design as merely gluing two dual-core Woodcrest chips together, whereas the Barcelona chip includes all four cores on a single piece of silicon. Analysts are divided on the impact of that distinction, and say they cannot measure the difference until they compare benchmarks from both finished versions. Still, AMD trumpeted Barcelona as an engineering achievement that marks the company's shift to 65-nm architecture. By shrinking the processor die, AMD is able to improve power efficiency and squeeze an extra level of shared cache memory onto the design, said John Fruehe, AMD's worldwide market development manager for server and workstation products. "As you add more cores, it becomes less about brute force and more about the efficiency of how many things you can do at once, and how efficiently you can order them," he said. "From a customer perspective, those who will see the biggest bang for their buck with quad-core are people running applications like larger databases. The more threaded an application is, the more benefit you get." The users who will see the greatest return on their quad-core investment are users of multithreaded applications like CRM (customer relationship management), ERP (enterprise resource planning), e-commerce and virtualization, Fruehe said. AMD will first launch the Barcelona design on a four-socket board (running four quad-core chips) and a two-socket board (running two quad-core chips). The company will wait until later in 2007 to launch single-socket Barcelona boards, which are used mainly to develop new applications for the larger servers or to run Web farms to handle multiple simultaneous processing requests. AMD expects servers vendors such as Dell Inc., Hewlett-Packard Co., IBM Corp. and Sun Microsystems Inc. to adopt the new technology for their servers in 2007, although none of those companies has yet made a public announcement.
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(InfoWorld) - Advanced Micro Devices' move to cut overhead costs by outsourcing its chip manufacturing business may backfire in the long run, according to several analysts who have downgraded the company's stock. AMD is struggling it keep its head above water after posting losses of $611 million and $574 million for its past two quarters. The company has also drawn criticism for its manufacturing, with recent reports that it will delay the full-volume launch of the "Barcelona" quad-core Opteron server chip from July to October. That would hobble AMD in its effort to compete with surging rival Intel. Although AMD's Opteron has won over many users of Intel's Xeon server chips since its launch in 2003, that trend is now in a sharp reversal, according to a June 13 report from Jon Peddie Research. In the market for workstation processors, AMD had pushed Intel's share down to 87.6 percent in the first quarter of 2006, but Intel has rebounded since then, reaching 92 percent share in the first quarter of 2007. The building pressure recently prompted some analysts to predict that AMD might stop manufacturing any chips at all and convert to a fully outsourced business model as soon as 2008. AMD said that rumor had come from a "speculative" Goldman Sachs report, but confirmed that the company is trying to focus its efforts on developing chips instead of manufacturing them, according to AMD spokesman Drew Prarie. AMD currently has a deal giving it access to IBM's chip fabrication plant in East Fishkill, New York. Under that arrangement, AMD can perform much of its research and development without having to incur the cost of owning its own manufacturing plant, he said. "We're looking to find ways to extend that model beyond research and development to the full range of the manufacturing supply chain," Prarie said Monday. "That could run the range from increasing the amount of processors we send out for chartered manufacturing, and could also include things like establishing partnerships on the manufacturing side." AMD has already taken some steps in this direction. In 2006, AMD announced a plan to give Chartered Semiconductor Manufacturing a heavier load, asking the firm to begin making the new 65-nanometer scale Athlon chips and other processors. And in May, AMD announced that it hadÂ awarded the job of manufacturing its newest graphics chips to Taiwan Semiconductor Manufacturing Company (TSMC). Now the company may be preparing to expand that model, according to a June 17 report from Citigroup analyst Glen Yeung. AMD is on the verge of making a "transformational move" such as outsourcing a larger share of low-end processors to TSMC, selling a share of the manufacturing capacity in its Fab 30 chip-making plant in Dresden, Germany, or even selling a share in its planned $3.2 billion chip plant in Saratoga County, New York, Yeung wrote. Despite AMD's insistence that such an arrangement would simply allow it to stay in the chip business while cutting costs, the uncertainty makes Wall Street analysts nervous. The Citigroup report lowered its estimate of AMD's future revenue from $1.3 billion to $1.1 billion for the second quarter, and from $5.8 billion to $5.6 billion for the full year of 2007. Those figures would represent a flat performance compared to AMD's performance last year, with $1.22 billion of revenue in the second quarter of 2006 and $5.6 billion for the full year. "We are again lowering AMD estimates, this time for 2Q07 (we had previously lowered 2H07), reflecting our field checks suggesting current conditions are weak," Yeung wrote. While Citigroup recognizes that AMD could be moving away from its own manufacturing and that could help the company cut costs, "we remain on hold for the shares given near-term weakness," he wrote. In contrast, Yeung said Intel would continue to enjoy a competitive advantage thanks to theÂ potential delay of AMD's Barcelona chips, the rising popularity of Intel's new Santa Rosa notebook platform, and the continued sales of Core-family chips for desktop PCs.
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After its recent delays and missteps, chip maker sets its sights on a dual-core future.
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Aiming to deflate archrival Intel, Advanced Micro Devices this week will show off its dual-core chips, which will start to trickle out toward the middle of next year.
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Advanced Micro Devices gave further details of its&#160;upcoming Fusion processor, saying it will be based on the design of a microprocessor used in the desktops currently shipping to enthusiast PC users such as gamers.The Fusion chip, which will combine a graphics processing unit and CPU on one chip, will be a redesign of the company&#39;s current&#160;Phenom processor, said Patrick Moorhead, vice president of advanced marketing at AMD, in an interview. However, the Fusion chip will witness significant design changes from the current iteration of Phenom, Moorhead said.The Fusion chip, code-named Swift, will be shrunk from the Phenom core and be optimized for use in a notebook, Moorhead said. The optimization will focus on making the chip more power-efficient while increasing graphics capabilities, Moorhead said.The graphics processing unit on the Fusion chip will include multiple &quot;mini-cores&quot; that breaks down code from a program, like 3-D games, to process data faster, said John Taylor, an AMD spokesman. Fusion&#39;s graphics processor will be based on a graphics card AMD plans to release in the near future, Taylor said, declining to give details.The first Fusion chips will be released as dual-core CPUs for notebooks, followed by quad-core CPUs for notebooks, Moorhead said. The dual-core notebook processors will be available in the second half of 2009, said John Taylor, an AMD spokesman. The company didn&#39;t provide a timeline for the quad-core chips.Fusion chips will also be released eventually for desktops, Taylor said, although he declined to comment on a release date.Originally released as part of the &quot;Spider&quot; multimedia platform last year, the Phenom processor has an integrated memory controller, cache, and four cores on a single chip. Currently available in speeds up to 2.3GHz, AMD earlier this month delayed the shipment of the faster Phenom 9700 and 9900 quad-core processors to the second quarter. The company is due to ship a triple-core Phenom processor later this year.The Fusion CPU is part of Project Shrike, the next-generation platform that will be an upgrade to the company&#39;s upcoming Puma platform. It includes the Turion Ultra processor, code-named Griffin. The Puma platform boosts a system&#39;s graphics performance by running both the integrated graphics processor and a graphics card attached to the motherboard together.Like Puma, additional graphics cards can be attached to boost performance of systems based on Project Shrike, Taylor said.Fusion chips will be made using AMD&#39;s 45-nanometer production technology, said Mario Rivas, executive vice president of the computing products group, during a meeting in December.Fusion isn&#39;t being designed for ultramobile PCs, Moorhead said. &quot;The jury is still out on whether the UMPC market has legs or not. But we&#39;ll see,&quot; Moorhead said.Plans to launch the Fusion chip were announced when AMD bought ATI for US$5.4 billion in 2006. The acquisition of ATI was also viewed as a potent weapon in AMD&#39;s attempt to dent Intel&#39;s domination of the x86 processor market. However, AMD has struggled lately, announcing five straight quarterly losses, delaying processor shipments, and falling behind Intel in chip production.Intel has already rolled out more than 30 Penryn-based chips based on the 45-nanometer process, with AMD still producing chips using the older 65-nm process.
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(InfoWorld) - AMD hopes to seize a larger share of the server chip market fromÂ its rival IntelÂ on Monday when it launches the Barcelona quad-core processor. AMD has been shipping the Quad-Core AMD Opteron chip to server vendors throughout August but will use its news conference in San Francisco to publicly announce those partnerships as well as prices and benchmark test results. The company plans to launch a 1.9GHz, 68-watt Barcelona chip that focuses on power efficiency, and a 2.0GHz, 95-watt version that focuses on price/performance, said Randy Allen, AMD's corporate vice president for the server and workstation division. In the fourth quarter, the company will follow that with a 2.3 GHz, 120-watt version for high-performance applications, and higher clock speeds for the first two chips. There is a lot at stake. After launching the original Opteron chip in 2003, the company enjoyed brisk demand as customers applauded the power-efficient performance of that 130-nanometer design process chip. But Intel soon got back in the fight as both companies built smaller, faster components, shrinking their chip scales to 90nm and adding a second core. AMD has endured disappointing results lately,Â posting losses in the hundreds of millions of dollars for recent quartersÂ and focusing its attention onÂ a merger with graphics chip maker ATI. At the same time, Intel claimed bragging rights to beating AMD to quad-core architecture andÂ 65nm scale chips with its ClovertownÂ server chip.Â Intel is also preparing to launch an even smaller-featured design in the fourth quarter with its 45nm Penryn chip. AMD says Barcelona is the answer to the Intel challenge. The chip is designed with all four cores on a single die as opposed to Intel's design of joining two dual-core Woodcrest Xeon chips, Allen said. Even more important, AMD upgraded each core from 64-bit floating point performance to 128-bit and retained its Direct Connect architecture and on-chip memory controller to avoid bottlenecks in data flow, he said. Thanks to that design, the new chip will provide better performance while using the same amount of power, he said. A customer could upgrade a Hewlett-Packard ProLiant DL 385 server from AMD's dual-core to quad-core Opteron and gain faster operation with the same power and cooling demands. "Clovertown will look very anemic, especially as we bring out new frequencies. Customers really don't buy nanometers. What they care about is performance and benchmarking," said Allen. "That Direct Connect architecture is very helpful with virtualization, running multiple OSes, and other applications pulling more data than can be held in on-chip memory." Despite those advantages, AMD has missed out on a spike in market demand driven by a need to upgrade to servers capable of performing virtualization, one analyst said. "A lot of people view this as six months late or more," said Doug Freedman, managing director for research at American Technology Research. "Expectations got ahead of themselves, and some people viewed this as a potential savior for AMD after their server share topped out at the end of last year going up against Intel's dual-die quad-core. Now the feeling is this launch isn't robust enough in terms of samples shipped, design wins, and the complete food chain." To recover, AMD will have to quickly increase its production and release faster versions of Barcelona to improve the chip's availability for a range of applications, Freedman said. Intel executives say they are pressing the lead. "We are very confident, at least on the DP [dual processor] side, that we will have leadership across most of the benchmarks versus Barcelona," said Adesh Gupta, regional platform architecture manager at Intel Asia-Pacific's Server Platforms Group. "There are a small percentage of benchmarks which are floating-point based where we know that they have an advantage and that's an area which we will see them talk about a lot.... If you look at the broader spectrum of applications at the enterprise, we have a significant lead today, and we believe we will have that lead with Clovertown, and once we have Harpertown with 45nm we will extend that lead further," Gupta said. However, some vendors say there is room in the market for both chips. Each processor has its own strengths, said Dell CEO Michael Dell in remarks to financial analysts at the Citigroup Technology Conference in New York on Wednesday. Based on early tests, Dell said, a server using Barcelona chips is faster at running floating-point applications than a computer with Intel's Clovertown chips, but Clovertown is faster than Barcelona at running integer instructions. "So depending on the applications you run, or your theories of computer science, one of those servers may be the best for you. It is simply unacceptable for a company of Dell's size to have only one of those choices," Dell said.
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(InfoWorld) - AMD on Monday is giving the public an advanced look at how its pending quad-core chip will improve performance and save energy. AMD, playing catch-up to rival Intel, whoseÂ quad-core XeonÂ product launched in 2006, will discuss features of its quad-core product, code-named Barcelona, at the International Solid States Circuits Conference in San Francisco, a forum for engineers in solid state circuitry and system-on-a-chip processor design. AMD says it will present details at the conference of how Barcelona, due to be released in mid-2007, improves performance and energy efficiency over the competition and over its own dual-core processor, the Opteron, which it introduced in 2003. Barcelona will feature "Enhanced PowerNow" technology, which will dynamically adjust core frequencies as workloads change in order to power down cores when not needed to save energy, said Brent Kerby, product marketing manager for Opteron. Under the PowerNow technology already deployed in the dual-core Opteron, the OS delivers the needed power to the busiest core, but if the other core is not as busy, it will still receive the voltage demanded of the busiest core, Kerby said. But with Enhanced PowerNow, while the busiest core will receive the power it needs, the OS will reduce the frequency and voltage of the remaining cores because they aren't as busy. "We still see power savings with our current PowerNow technology, but it's going to get better with Barcelona because we're going to be able to dynamically and independently adjust the core frequencies of each individual core," he said. Also in Barcelona, the OS will directly communicate with the CPU instead of first going through the CPU driver, a more efficient approach, he said. "With Barcelona, there is no CPU driver middleman. The OS can tell the processor directly, 'Hey this is how much work I'm doing,' and the Barcelona core will determine when the best time is to make that change. It's not doing it blindly," he said. Barcelona also separates the power management of the cores from that of the memory controller, which is embedded in AMD-designed processors. That way, frequency and voltage can be reduced to the cores when they are not busy and increased to the memory controller when it is busy, and vice versa. AMD claims an 80 percent reduction in memory controller power usage with this design change. Barcelona will also feature enhanced clock-gating, which means core logic circuits can be turned on or off to save power. Like settings on a coffee grinder, the chip can do "coarse" or "fine" clock gating, shutting down increasingly finer sections of core logic as needed. AMD claims that Barcelona can deliver a 40 percent improvement in performance over "the competition." While not mentioning Intel's Xeon specifically, AMD has long pointed out that its quad-core chip will be four cores designed on the same piece of silicon, while Intel's design is two dual-core processors packaged together.
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The latest road map change involves two of AMD's quad-core chips for desktops, and will result in the company focusing on triple-core chips and energy-efficient quad-cores in the first quarter.
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AMD has raised the stakes with Intel as the pair prepare to do battle over dual-core processors following last week&#39;s demonstration of a dual-core x86 Opteron.
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AMD used the Fall Processor Forum to provide more details about its dual-core Opteron architecture which is scheduled to be released by mid of 2005.
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Advanced Micro Devices Inc. (AMD) said Friday it would begin shipping its &quot;Barcelona&quot; quad-core Opteron processor in August, rebutting industry rumors that the chip faced manufacturing problems that could delay it until October.
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Still carrying the weight of costs related to last year&#39;s&#160;acquisition of graphics vendor ATI, AMD recorded its fourth straight quarter of net losses Thursday.The company reported a net loss of $396 million, or $0.71 per share, for the third quarter, compared to net income of $136 million for the year-earlier quarter. Analysts polled by Thomson Financial had estimated a loss of $0.62 per share. The loss included a $120 million charge related to its acquisition of ATI last year.AMD recorded third-quarter revenue of $1.632 billion for the quarter ending Sept. 29, an 18 percent year-over-year increase.The company sold a record number of microprocessors during the quarter, AMD said in a news release. Microprocessor unit shipments increased 19 percent year-over-year and mobile processor shipments increased 68 percent, AMD said.After months of delays,&#160;AMD finally released its latest quad-core Barcelona processor in September.&#160;AMD is locked in a quad-core chip battle with Intel, which shipped more than 2 million quad-core processors during the quarter, Intel said in its earnings call on Tuesday.AMD has already lost ground in the market for server chips to Intel in recent quarters. AMD&#39;s quad-core Opteron processor, also called Barcelona, opened up a revenue stream for company during the quarter, the company said.