Intel competes with AMD with the release of new server processors

Intel CEO Pat Gelsinger at the COMPUTEX 2024 forum in Taipei, Taiwan, showed the next generation of Xeon server processors, writes Reuters. What do we know about these devices and will they help Intel regain data center market share?

Xeon chips are critical for Intel

Sixth generation Xeon chips presented in two main variants:

1. More powerful version.
2. The so-called efficiency model that Intel introduced as a replacement for the old-generation chips.

To achieve the same level of processing power as the second-generation chips, the Xeon will now require about 67% fewer server racks with the “efficiency model” ;, which is designed to serve media, websites and perform database calculations.

How did their competitor take advantage of Intel's decline in market share — AMD

Disruptions in Intel's manufacturing process, namely the company's shrinking share of the data center market for chips, played into the hands of Advanced Micro Devices (AMD). The company was able to strengthen its position because it works with Taiwan Semiconductor Manufacturing Co (TSMC) to produce chips. A lot of chip manufacturers depend on TSMC today, especially in China.

Analysts say that Intel's share of the dedicated x86 chip market for data centers has shrunk to 76.4% over the past year, while AMD currently occupies 23. 6%.