AMD: “Intel is doomed to fail”

Intel CEO Pat Gelsinger decided to turn the company into a chip production foundry and open it to orders from third-party companies. In line with this goal, Intel also announced billion-dollar new production facility investments. However, it seems that arch-rival AMD is not very impressed by Intel’s plan. In fact, the red team believes that this is the wrong choice and will ultimately lead Intel to collapse.

Intel’s Foundry Services (IFS) provides “world-class chip manufacturing” services to chip companies without a manufacturing arm. Intel is even opening up its advanced manufacturing facilities, advanced packaging technology and development services to rival companies as CEO Pat Gelsinger tries to open new revenue streams in the increasingly competitive and shrinking PC market.

AMD thinks Intel will fail

So, will Intel succeed in this seismic shift in its traditional business structure? “Of course not,” according to Darren Grasby, AMD vice president of strategic partnerships and president of AMD EMEA. Grasby criticized Intel’s decision during Canalys EMEA Forum 2023, stating that the company’s new path to revenue growth is wrong.

Grasby said AMD took the opposite path years ago, abandoning its own chip manufacturing factories and choosing a completely “factoryless” path. Thus, the x86 company was able to invest much more money in the roadmap of processor designs. We can see from the success of Ryzen that this is the right path for AMD. Intel, on the other hand, follows the opposite path. Although the company produces its own processors, it took a different path for Arc GPUs and agreed with TSMC.

In addition, Intel is making significant investments in new production facilities built in the USA (Arizona, Ohio, New Mexico) and Europe (Germany). Speaking about Intel Foundry Services, Gelsinger recently said that he and the company will receive a “passing grade” after two and a half years of this journey. Gelsinger noted that if the foundry venture is successful, Intel will also have to accept “business” opportunities from its competitors, which means chips “made by Intel” will generate revenue from companies like Nvidia, Arm and even AMD.