Name: It Took 53 Years for AMD to Beat Intel. Here's Why. | WSJ
Uploaded: 2023-05-09T01:53:22.000Z
Duration: 6 min 52 s
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- [Presenter] Computer chips probably make you

- [Presenter] It was the world's largest chip maker

and it's still America's largest chip company by sales

In 2022, the longtime rival took Intel's top spot

in market value, breaching a market cap of over 200 billion.

- It was the first time that ever happened.

- [Presenter] In part, this recent achievement

and expensive decision AMD made that changed the game

not just for the company, but for computing.

So how did AMD finally catch up to Intel?

A small group of engineers founded Intel,

which are essentially the brains of a computer.

Intel prioritized development from the start

and didn't report any sales in the first six months.

Meanwhile, 20 minutes down the road and 10 months later,

a former coworker of those engineers founded AMD

AMD was making chips that Intel had already made,

focusing more on keeping up than getting ahead.

A year later, it was the best selling semiconductor device

- AMD really came up as kind of an Intel copycat,

company that was making alternatives to Intel chips

so like maybe a little bit cheaper and things like that.

So they kind of came in second in a lot of ways to Intel,

especially when it came to CPUs and the rise of CPUs.

- [Presenter] CPUs are central processing units,

First, the base, a flat piece of silicon.

Silicon is a semiconductor, which means it's conductive

but can be made more conductive by adding other materials

On that silicon piece, there's a pathway of transistors

These strings of electronic blips read as one or zero

That information goes through this, a core.

In simplified terms, the core takes in a problem

Those answers help determine how to respond to requests

like opening a webpage or sending an email.

programmable microprocessor, another success.

The company churned out new chip after new chip,

creating industry standard after industry standard.

- Back in those times, it was able to put together

this combination of marketing itself well

and creating some of the world's best technology

to become the powerhouse that it became back then.

- [Presenter] By 1997, Intel chips served as the brains

and six times its manufacturing capacity.

Just look for a PC with an Intel processor inside.

- [Presenter] Going into the new millennium,

AMD's market value lagged behind Intel's.

Fast forward to late 2014, when the company tasked new CEO

Before Su's tenure, the company had fought off rumors

So behind the scenes, Su began working on a new innovation.

- AMD released a new design for their high performance chips

First, the transistors were organized in a new way

Intel had been focusing on making a single CPU

there were multiple small chips in the same package,

connected together and acting like one CPU.

- That strategy conferred some key advantages

in terms of power consumption, in terms of cost,

but still performed very well against Intel's products.

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It Took 53 Years for AMD to Beat Intel. Here's Why. | WSJ

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