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Intel loses $30 billion chip contract

Báo Kinh tế và Đô thịBáo Kinh tế và Đô thị18/09/2024


According to sources revealed by Reuters, in the competition to supply chips for the PlayStation 6 gaming console (expected to launch in 2027), after Broadcom was eliminated, only two competitors remain: Intel and AMD.

It is known that in 2021, Intel Foundry – a contract chip manufacturing plant – began operations. Typically, PlayStation will sell over 100 million units in 5 years. Thus, the manufacturer may achieve an estimated profit margin 5% lower than with AI chips, but will have a stable source of revenue due to the long-term sales of gaming consoles.

Intel loses $30 billion chip contract.
Intel loses $30 billion chip contract.

However, sources reveal that Sony and Intel failed to reach a common agreement after numerous negotiating meetings.

Sony relies on experienced third-party suppliers to manufacture PlayStation chips. However, the processor for the game console must be compatible with the previous version, so that users can install older games on the new hardware.

The chipsets used in PlayStation consoles are primarily developed by AMD, so ensuring compatibility with previous PlayStation versions would be costly and require more technical resources from Intel. Therefore, this may be the reason Intel rejected Sony's offer.

Rumors suggested Sony might pay Intel $30 billion over the duration of the contract if both parties signed. However, that didn't happen, and ultimately the PlayStation 6 chip manufacturing contract went to AMD.

Sony and Broadcom have not responded, while AMD declined to comment.

According to CNBC, Intel is gradually losing its luster in the chip industry as it relinquishes its chip manufacturing advantage to TSMC and is overtaken by rivals such as AMD and Nvidia.



Source: https://kinhtedothi.vn/intel-danh-mat-hop-dong-chip-tri-gia-30-ty-usd.html

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