Intel Shifts the Memory Controller

Intel have finally moved their memory controller from the graphics memory and controller hub (GMCH) a.k.a. Northbridge chipset onto the processor allowing faster access to memory resources by the processor and combining both the processing and memory control functions. Bloomberg reports:

Intel Corp., the world's biggest semiconductor maker, today showed off a new chip that has direct access to memory in computers, invading one of the last market niches dominated by Advanced Micro Devices Inc.

Intel for the first time is combining the memory and processing functions into a single chip, instead of using two. The result is a processor that helps pull up data and perform calculations faster. Other features boost the ability to handle video and sound files, and share work among computers.

While AMD has had a memory-controlling chip on the market since 2003, new processors using the design were delayed and didn't catch on with customers, analyst David Wu said. Santa Clara, California-based Intel will have a performance lead until 2010, he said.

As the article notes, this used to be AMD's domain. Intel have now caught up. It definitely seems Intel is on the attack on all fronts. In Nvidia vs. Intel we highlighted how Intel was aligning their sights on Nvidia by challenging Nvidia's core graphics technology strength. One wonders how far Intel can stretch themselves? It is difficult to see any company overtaking Intel now. They will be the dominant player for years to come. I don't think this is good myself and as I have said in the past, I hope to see a strong, competitive AMD rebound and continue to push Intel. This is good for the consumers.

The situation is very similar to Microsoft. They have hardly any challenegers and are therefore able to release flawed operating systems such as Vista. It is doubtful they would even consider sending out Vista with flaws if there was a viable competitor on the horizon. Market dominance does not neccessarily mean better products. It only means less alternatives and that the company with all the money, even with inferior products, can crush any competitor with better offerings. Do I sound lie a cheerleader for the open source crowd? Don't mean to!

Bloomberg: Intel Invades AMD Niche With Memory-Controlling Chip

AMD's Asset Smart Strategy: What is it?

An excellent article on the Guardian covers most of what AMD have been going through over the past couple of years. The Guardian writes:

Advanced Micro Devices Inc's future depends on still-murky details of a plan to overhaul its manufacturing, and Wall Street is impatient.

AMD now lags far-larger rival Intel Corp in chipmaking technology and could be about nine months behind Intel when it introduces chips with elements as small as 45 nanometers in the second half of this year.

The company has also reported seven straight quarterly net losses in a row, and it's hard-pressed to afford building a new, next-generation chip plant, which can cost $3.5 billion, with $5.6 billion in long-term debt on its books.

Together, Intel and AMD control virtually the entire market for microprocessors, the electronic brains of personal computers and server computers that comprise corporate networks.

AMD's future hinges on what it calls Asset-Smart strategy: whether it adds capacity by striking a deal to use foundries of an Asian contract chipmaker such as Taiwan Semiconductor Manufacturing Co Ltd, or perhaps signing an agreement with longtime partner International Business Machines Corp.

"I don't know what Asset-Smart looks like, but anything is better than today. Anything is better than going out of business because you run out of money" said Stifel Nicolaus analyst Cody Acree. "It might be a partnership with IBM or TSMC or it might be an outright sale of their manufacturing."

Executive Chairman Hector Ruiz, who led AMD as its CEO for more than six years and stepped aside in mid-July to hand the reins to Dirk Meyer, is driving the plan to completion and has repeatedly promised answers by the end of the year.

We have been following this story for some time and the above quotation is a good summary of the situation as it stands now. Honestly, good luck to AMD to staying in the game. I personally think much of the innovation and acceleration in product design by Intel has been because of AMD punching above their weight. Without at least a minor competitor how fast will Intel develop products? I recall earlier this year Intel wanted to delay the rollout of some processors as there was no reasonable external competition and they felt the newer processors would compete directly with their earlier generation of processors. They denied the rumor but it wouldn't be out of the realm of possibility. Ultimatey this doesn't benefit the consumer.

Also, the brutal price war between AMD and Intel has signifcantly lowered the prices of processors. If AMD are pushed out of the game, Intel will monopolize the market (haven't they already?) and set prices as they please similar to what Mircrosoft does.

So seriously, here's hoping AMD can pull out of their slump and get back in the game, with or without fabs.

Guardian: AMD manufacturing plan key to chipmaker's future

Core i7 Processors from Intel

Intel have decided their new high-end processors will retain the Core brand name. The new processors will be branded Core i7 and will come with two, four or eight cores. According to the Intel press release:

Intel Corporation announced today that desktop processors based on the company's upcoming new microarchitecture (codenamed "Nehalem") will be formally branded "Intel® Core™ processor." The first products in this new family of processors, including an "Extreme Edition" version, will carry an "i7" identifier and will be formally branded as "Intel® Core™ i7 processor." This is the first of several new identifiers to come as different products launch over the next year.

Products based on the new microarchitecture will deliver high performance and energy efficiency. This "best of both worlds" approach is expected to extend Intel's processor leadership in future mobile, desktop and server market segments.

"The Core name is and will be our flagship PC processor brand going forward," said Sean Maloney, Intel Corporation executive vice president and general manager, Sales and Marketing Group. "Expect Intel to focus even more marketing resources around that name and the Core i7 products starting now."

Personally I am glad they finally branded it. In my industry their codenames (e.g. Nehalem, Penryn, Wolfsdale etc.) cause a great deal of confusion. I have even seen how Centrino platforms are confused (even by Intel representatives). For example a Centrino platform must have three essential chipsets: an Intel processor from a specified list, a mobile Intel chipset from a specified list and a wireless Intel chipset. However, last week an Intel rep. told one of our project managers that for embedded systems if the wireless chipset is replaced with an Intel southbridge then it could be called a Montevina system, which is codename for Centrino 2. When I asked the project manager (who then asked the rep) why we couldn't brand it Centrino 2 the rep. was confused saying it was a Montevina system but could not be branded Centrino 2.

Yeah, these code names really confuse the heck out of me and most people outside Intel. Evidence suggest some people inside Intel also get confused too. At least now we know the next Intel processor will be Core i7, that is easy enough to remember.

Intel Press Release: Next-Generation Intel PC Chips to Carry Intel Core Name

AMD's Foundry Business

As we have noted on and off over the past AMD seems to be becoming an asset-lite or fabless design house (see Is AMD Going to Spin-Off their Manufacturing). AMD have denied they are spinning off their manufacturing and insist they will keep their fabs. The problem is if they keep their fabs they will be less competitive against Intel as the fabs suck up a lot of money. The relevance of this to Taiwan tech firms is that if they do spin-off their manufacturing, the chances are they will use Taiwan's pure-play foundries to manufacture their products. An excellent commentary on EE Times highlights the difficult choices facing AMD.

EE Times says:

In the future, AMD is supposedly planning to split the company into two parts. It will supposedly spin out its manufacturing unit, turning AMD into more or less a design house.

The manufacturing spinoff may take ownership of AMD's fabs, especially its leading-edge plant in Dresden, Germany. Reports have surfaced in the media that AMD will also have its parts made on a foundry basis by Chartered, TSMC and possibly United Microelectronics Corp.

Sources say otherwise. TSMC is expected to get the lion's share of AMD's foundry business--leaving Chartered on the outside looking in, according to one source. Chartered may make some of AMD's products, but the many of AMD's key parts have already migrated to TSMC's fabs, according to the source.

In any case, the strategy is risky. There is little or no evidence that a foundry can keep up in the high-volume processor game against Intel. Foundries can make processors, but they have typically worked with small, third-tier suppliers over the years. Competing with Intel is a different story.

On second thought, there's a good change the strategy will succeed. By the time AMD makes its asset lite announcement--and based on the company's recent execution--the processor vendor could lose what's left of its status and become a second- or third-tier player.

Maybe not a third-tier player, but one that is fighting to stay relevant.

I find it interesting the commentary argues the foundries won't be able to maintain their high-volume processor manufacturing. I don't think the pure-play foundries have ever competed with Intel directly as the business models are different. I imagine the problem here would be the utilization rates of the fabs. To compete evenly with Intel a significant amount of the fabs processing capacity will have to be used to manufacture the processors. This will have a negative effect on the pure-play foundry's other customers. Its an interesting dilemma that they will have to solve themselves.

EE Times: Commentary: Who won AMD's foundry business?

AMD vs. Intel

An interesting story over the past few years in the processor industry is the brutal price war between Intel and AMD. The price war has shattered AMD and left them struggling for survival with suggestions they might have to give up their fabs and go fab-lite or fabless. The war was started by Intel and then Hector Ruiz, the then CEO of AMD, used the price war to try and gain market share. However, delayed product rollouts by AMD and losing the performance advantage they had for a short while meant a loss of market share and a change in AMD leadership. Of course, one of the big causes of the business downturn was the purchase of ATI by AMD which was in excess of US$1 billion.

In the meantime, AMD has long accused Intel of unfair business practices. A trial pertaining to AMDs complaints is set to start in 2010 and will continue for an extended period of time. The Mercury News writes:

Buried in more than 150 million pages of documents compiled in the legal dispute between Silicon Valley chip makers Advanced Micro Devices and Intel is a remarkable tale of alleged corporate nastiness that could keep the courts and regulatory bodies buzzing for years.

AMD claims its larger rival Intel has used under-the-table payments, threats and other "dirty tricks" to deter computer makers from buying AMD's semiconductors. It says Intel, among other wrongdoings, offered a Tech Data executive a $1 million bribe, browbeat Acer into backing out of an AMD promotion and sold software that crashed computers running AMD chips.

The pages of AMD's suit accuse Intel of so many acts of market intimidation they "read like a chapter from 'The Godfather,' " according to Nathan Brookwood, a research fellow at the Saratoga market consulting firm Insight 64.

Intel insists it has done no more than provide legitimate incentives to use its products and that its business practices have helped keep computer costs low.

Still, the accusations by AMD - whose stock has plunged in recent months to nearly a 20-year low - have sparked a worldwide furor. Authorities in Japan, South Korea and Europe also have accused Intel of wrongdoing. Moreover, the Federal Trade Commission and New York's attorney general in recent months have launched investigations into its practices.

How all this plays out could have multibillion-dollar implications for both companies as well as for consumers, experts say. But determining what really has gone on in the chip industry could prove monumentally daunting.

A special master assigned to the case estimated that the documents dredged up by the suit so far would produce "a pile 137 miles high." Yet depositions with key industry figures are just beginning and the fact-finding could drag on for years.

"This case is on track to be the largest in terms of discovery in the history of civil litigation," said Intel spokesman Chuck Mulloy.

This case will be interesting to watch over the next few years. I am just glad I will not be the one reading the 150-million pages entered into evidence!

The Mercury News: 'Dirty tricks' or fair play by Intel in rivalry with AMD?

VIA's Nano Outperforms Intel's Atom

PC World reports at least three reviewers have found the VIA Nano low-cost processor consistently outperformed the Intel Atom processor. Both processors were designed specifically for low cost PCs which are currently selling out around the world. PC World writes:

Performance comparisons of Via Technologies' Nano processor and Intel's Atom chip conducted by several hardware-enthusiast sites Tuesday confirmed what many industry observers have long suspected: the Taiwanese processor company has produced a chip that outperforms Intel's offering for low-cost computers.

The three reviews are listed below:

• PC Perspective: VIA Nano and Intel Atom Review - Battle of the Tiny CPUs
• Hard OCP: Intel Atom vs.VIA Nano
• Hot Hardware: VIA Nano L2100 vs. Intel Atom 230: Head to Head

This news is interesting. As far as I can tell VIA have been in the low cost CPU game for a long time. I remember when I first started in the technology industry here, VIA were already launching low power processors and people were laughing them off. They were, if I recall correctly, focusing on green technologies at a time when Intel were trying to ramp up their processor speeds. It therefore doesn't surprise too much that the VIA processor currently outperforms the Atom processor. VIA have been in the game for a long time.

However, I do think first, the Atom processor will outsell the VIA processor. The Intel marketing machine is a phenomenal one and they have far more experience than VIA. Secondly, I also think in time the Intel low power processors will get better and outperform the VIA processors. Although VIA will still have a place in the market with their niche processors, I doubt they will gain a dominant position in the low power processor market.

PC World: VIA's Nano Processor Tops Intel's Atom in First Reviews

Low Cost Processors: The Competion Heats Up

On Monday Nvidia launch what they are calling the "world’s first single-chip computer." From their press release:

Today, NVIDIA Corporation (Nasdaq: NVDA) introduced the Tegra family of processors, the world’s first single-chip computer capable of the rich high definition and internet experiences we’ve come to expect from our PCs, but on small pocket type devices. NVIDIA Tegra is a tiny computer-on-a-chip, smaller than a US dime (10-cent piece), designed from the ground up to enable the “visual PC experience” on a new generation of mobile computing devices while consuming the smallest amount of power.

As many commentators have mentioned, this chip is meant to take on Intel's Atom processor. Atom is a fairly new processor launched a few months ago. Both the Tegra and Atom are aimed at Mobile Internet Devices (MID) e.g. smart phones and PDAs. However, Jack Schofield notes on the Guardian some of the problems associated with the Tegra.

The obvious drawback with the Tegra approach is that it runs Windows CE (or Windows Mobile) not Windows XP, which was written for x86-compatible chips. And if you want to run real Windows software, Tegra doesn't do the job.

More than a decade ago, Microsoft wrote Windows CE as a whole new operating system precisely because it thought x86 chips cost too much for casual buyers, and consumed too much power to offer long battery life. It thought there was a market for Mobile Companions, webpads and other devices among people who didn't actually need the laptop/desktop version of Windows, or its vast library of programs.

Microsoft turned out to be wrong, at the time. It will be interesting to see if times have changed enough to make it right.

Intel's Atom takes the opposite approach of trying to reduce the overhead of the x86 code from the past (smaller, cheaper, lower power consumption). And from Computex, it looks as though the Intel Atom is the one that has pulled in the PC manufacturers.

But this might be the first step by NVIDIA to move towards competing more directly with Intel. A few month's ago at the Intel Developer Forum in Shanghai Intel said they were trying to move the graphics core into the processor. This generated an interesting response from the NVIDIA CEO. Eflux Media notes:

NVIDIA CEO and co-founder Jen-Hsun Huang went on an Intel-related rant on Thursday at a meeting with financial analysts. The context is that Intel is trying to move the graphics processing unit (GPU) from the motherboard's chipset into the CPU, merging the two processing units on a single die for increased performance.

Last week at the Intel Developer Forum in Shanghai, Intel representatives boldly stated that discrete graphics cards will eventually become "unnecessary" for the regular consumer in the future."

Claim after claim after claim. They're just false. They cross the line of fair play," Huang said. "Here's another one. nVIDIA's gonna be dead. Because we're (Intel) sticking the graphics in the CPU and (nVIDIA) will have no place to stick it," nVIDIA's CEO said.

It certainly seems battle lines are being drawn between these companies. According to Computer World:

"There's a battle emerging here," said Nathan Brookwood, an analyst at research firm Insight 64. "This is going to be a very exciting area. It's perceived to be one with huge growth over the next few years. Everyone is going to want an in if they can pull it off."

Both NVIDIA and Intel make great products. No doubt! However, NVIDIA would be wise to think twice before enaging in a war with Intel. AMD did it over the past three years and although Intel's margins suffered significantly, they were the ones left standing. AMD are now doubting their future and are looking at becoming fabless.

However, with all the current noise being made surrounding NVIDIA and Intel, spare a thought for VIA. VIA were the first ones as I recall to see the potential for low cost processors and have had them in their catalog for quite some time. It just seems people are preferring the Intel Atom processors. To better establish their competitive position VIA have recently launched their own VIA Nano processor which many observers says will also compete with the Atom as well as some of Intel's other low power processors.

This market is heating up and competition seems to be growing. I guess we will know within a year or two who the real winners and losers are. But always remember the words of the VIA CEO who said a few years ago:

The Internet will be the biggest driving force. For Internet applications, the processor is not the main requirement -- the pipe is more important than the engine. It's like the auto industry: It used to be that people build bigger and bigger engines. But the road was only so wide, and car drivers were more limited by the road than by the engine. So people started looking at efficiency of the engine and went to smaller engines.

NVIDIA Press Release: NVIDIA Tegra: Tiny Computer Packs Massive Punch!
Guardian Article: Tegra's ARM-based chip to take on Intel for mobile market
Eflux Media: nVIDIA Boss Goes on Intel Rant
Computer World: Nvidia takes swing at Intel with new Tegra chips
VIA Press Release: VIA Nano™ Processor
Interview: Wen-chi Chen: Taiwan's Answer to Andy Grove? [PDF File]

AMD to Oustource CPU Manufacturing to TSMC

Yesterday Digitimes reported:

In addition to its GPU production, AMD is planning to also outsource CPU production to Taiwan Semiconductor Manufacturing Company (TSMC) in the second half of this year, according to industry sources.

Although Hector Ruiz, CEO of AMD did not mention any plans to outsource production during the company's recent investors conference, the industry sources revealed that TSMC has already started testing procedures for a SOI manufacturing process in order to land manufacturing orders for AMD's Fusion CPUs.

This is speculation however many believe AMD are trying to reduce their operating costs to become more competitive. If the outsourcing goes well they will be able to sell some of their manufacturing equipment and recoup some money too. This comes as no surprise. IC Insights predicted AMD would possibly look to become fabless in their recent ranking of the top IC foundries. In a press release, IC Insights said:

Considering its 1Q08 financial results, AMD could be a company that is forced to go fab-lite or possibly completely fabless in the near future.

AMD have recently been hammered by Intel and are trying to return to profitability. Divesting from their manfuacturing is one way to reduce costs, especially fixed overhead. To be honest, AMD products are not bad at all and have sufficient power and functionality for most day-to-day computing tasks. However, when you set yourself up as a competitor to a cash rich company like Intel, there will be problems since Intel have been known to initiate price wars and scale up their technology whenever they are threatened.

I hope AMD can return to profitability and continue to innovate. A few years ago Intel made a few mistakes and gave AMD an edge in the market. AMD even came to dominate the desktop chipset market in Q1 2006. Having an alternative in the market put pressure on Intel to innovate and be creative. I am sure that some of Intel's innovation has been driven by AMD's competitive pressures.

Article 1: AMD planning to outsource CPU production to TSMC in 2H08, say sources
Article 2: IC Insights Ranks Top Foundry Suppliers
Article 3: AMD vs Intel -- the stakes get higher (2006 article)

AMD Targets Small and Medium Businesses

Interesting report in from the Wall Street Journal (WSJ) on AMD's realigned business strategy to target small and medium sized businesses. WSJ says:

The Sunnyvale, Calif., semiconductor company on Monday expects to unveil an initiative -- code-named Hardcastle and now renamed AMD Business Class -- that comes with a "platform" of chip technologies to help PC makers build machines tailored to the needs of smaller companies. AMD's effort is based around its Athlon and Phenom microprocessors, which come in models with two, three or four electronic brains, as well as accessory products called chip sets that AMD has offered since its 2006 purchase of ATI Technologies.

According to WSJ:

All the major PC makers "are lining up," said Hal Speed, an architect in AMD's desktop division. "We're definitely looking to take market share."

The AMD site says:

AMD Business Class technology was designed with business in mind to deliver the best value on the market. These specially engineered platforms offer the features and price points that meet the needs of today’s business computer buyers, from multinational enterprises to small businesses.

AMD Business Class technology provides exceptional business value by providing a solid, reliable foundation for systems that offer industry-leading stability and longevity, exceptional performance and energy efficiency, and essential security and manageability.

It seems they are just repackaging what they already have. Maybe they can steal some market share, but it will be hard.

WSJ Article: AMD Sets Major Pitch For Small, Midsize Firms
AMD Site: AMD Business Class: Designed with Business in Mind

VIA Processors Making a Comeback

According to Digitimes, VIA processors are making a comeback on low cost PCs. Digitimes reports:

With Hewlett-Packard (HP) said to have ordered 100,000 C7-M ULV processors for its initial mini-note low-cost PC launch, (which is expected to reach 500,000 units in total in 2008) while Gigabyte Technology's new M700 series UMPC (ultra mobile PC) will also adopt VIA Technologies' CPUs, the Taiwan-based chipmaker may have a chance of recover from its long series of losses, according to industry watchers.

In addition to HP and Gigabyte, more hardware vendors are said to be evaluating VIA's CPUs for their UMPC and low-cost PC products.

The Atom processors recently lauched by Intel have certain limitations and therefore are not attractive to low cost PC manufacturers.

I also managed to dig up an old 2001 interview with Wen-chi Chen, VIA' s CEO. In that interview he argues for the development of the low cost processor. When asked why focus on cheap processors he argued:

We think that the value-line product will be the fastest growing in the whole PC space. It can easily grow another 20% higher than the whole market. That's the market where people want the products. People are looking at [a] second or third PC for the home, and the value line serves that purpose better..

When asked why, he replied:

The Internet will be the biggest driving force. For Internet applications, the processor is not the main requirement -- the pipe is more important than the engine. It's like the auto industry: It used to be that people build bigger and bigger engines. But the road was only so wide, and car drivers were more limited by the road than by the engine. So people started looking at efficiency of the engine and went to smaller engines..

It seems his 2001 optimism about this market is about to pay off. No doubt however AMD and Intel will respond and, even though the Atom has limitations, if there is money to be made they will readjust their strategy to ensure they stay ahead of the pack.

Article 1: VIA CPUs to stage comeback in low-cost PC market
Article 2: Wen-chi Chen: Taiwan's Answer to Andy Grove? [PDF File]
C7 2006 Press Release: New VIA C7®-M ULV Processor Family
C7 Product Page: VIA C7®-M ULV Processor

Atom Chips from Intel

Intel will launch a new chip family branded as Atom. The chips will be used on Mobile Internet Devices (MID) and low end laptop computers. The chip has two variants, one originally branded as Silverthorne and the other branded as Diamondville. According to Intel:

"The Intel Atom processor is based on an entirely new microarchitecture designed specifically for small devices and low power, while maintaining the Intel® Core™ 2 Duo instruction set compatibility consumers are accustomed to when using a standard PC and the Internet. The design also includes support for multiple threads for better performance and increased system responsiveness. All of this on a chip that measures less than 25 mm², making it Intel's smallest and lowest power processor yet.1 Up to 11 Intel Atom processor die -- the tiny slivers of silicon packed with 47 million transistors each -- would fit in an area the size of an American penny."

(Original Press Release: Intel Announces Intel® Atom™ Brand for New Family of Low-Power Processors.)

The Wall Street Journal has a great article on Intel branding strategies (Intel Plans for Ultra-Small Chips). According to the article:

"Intel's branding moves attract unusual attention, partly because they typically come along with lucrative marketing funds for hardware companies that agree to use its logos and meet other requirements. The concept started with the chip maker's Intel Inside campaign, a fixture of advertising and marketing materials since the early 1990s."

Raison d'être: IBM and the 500 GHz processor

On Saturday night I was hanging out with some friends, it was my wifes birthday and chatting about technology. One of the new friends we met was a retired computer consultant from California. I mentioned to him that IBM had tested a 500 GHz processor. He refused to believe me. Well, I read this press release two years ago and couldn't really remember it. So I created a blog to archive tech articles and events that I find interesting.

Being heavily involved in the Taiwan Hi Tech industry for 7 years now, most of the articles referenced will be particular to this little island that I have come to know as home, but there will also be other articles.

Anyway, for those interested, the original IBM press release dates to 2006 and reads:

"Somers, New York, USA & Atlanta - 20 Jun 2006: IBM and the Georgia Institute of Technology announced today that their researchers have demonstrated the first silicon-based chip capable of operating at frequencies above 500 GHz -- 500 billion cycles per second -- by cryogenically “freezing” the chip to 451 degrees below zero Fahrenheit (4.5 Kelvins). Such extremely cold temperatures are found naturally only in outer space, but can be artificially achieved on Earth using ultra-cold materials such as liquid helium. (Absolute Zero, the coldest possible temperature in nature, occurs at minus 459.67 degrees Fahrenheit)."

(Original Press Release: IBM and Georgia Tech Break Silicon Speed Record