PC business downgraded Intel servers first adopt 10nm process
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Intel predicts that in five years, PC chips will become its smallest business. Intel has already begun to vigorously develop its data center business. This is another sign that Intel is undergoing a big change, and the importance of the traditional PC business is decreasing. At an investor meeting last Thursday, Intel said that the total available market for PC chips is only about $30 billion, less than half of the total data center market. Even if it can occupy 100% of the PC chip market, it will only have $30 billion in revenue, and this is not going to happen. Currently, Intel's higher priority product lines include: data center, non-volatile memory such as Flash and Optane, plus mobile communications and various embedded chips. Referring to past history, if Intel wants to adopt new manufacturing technology, it often starts with PC chips. Today, Intel's high-end production lines are reserved for Xeon and other chips used in data centers. Diane Bryant, head of Intel's data center business, said, "This is a big deal." What this means is that Intel is not just talking. Venkata Renduchintala, president of Intel's Internet of Things business and system architecture, mentioned at a conference on Thursday that although PC shipments have declined, PC business revenue is actually growing. (Last week, Kim Stevenson, the second-in-command of Intel's PC chip division, announced his resignation six months after taking office.) However, the business of providing server chips and solutions for cloud computing vendors is on the rise. Although continuing to invest in the PC business will not help and cannot stop its downward trend, in a sense, this is the reality. Data centers are more important than PC business "2016 may be the year with the biggest changes in Intel's history," said Intel CEO Brian Krzanich at an investor conference. In the past, Intel was a company with a very single business: making chips for laptops, desktops and servers. But now Intel has not only microchip processors, but also memory, networking, the Internet of Things, wireless communications, and even software businesses. "Everything we do either generates a lot of data or requires a lot of data," said Krazanich. Intel has long had a keen interest in the server market, as evidenced by the price list for its chips: a desktop chip costs about $300, while a Xeon server chip can go for up to $9,000. The data center-first strategy has paid off. As part of Krzanich's strategic reorganization, "all functional organizations within Intel must ensure that they put the data center first when looking at their business, investments, and strategies," Bryant said. "This includes the next-generation process (10nm) being used first to produce server chips (Xeon), which is significant." Whether Intel's upcoming 10nm process or the more advanced 7nm process, both will be used first to produce chips for data centers. In the past, it would have been impossible for Xeon to be the first to adopt a new manufacturing process because the shipment volume of server chips would not be enough to cover the cost of the new production line. There is also a great risk in mass-producing Xeon chips because the new manufacturing process will inevitably have some defects, which may damage the final product. However, Bryant said that due to the introduction of a modular packaging structure, Intel can be the first to use the new process to produce data center chips in the early stage of its launch. Cannonlake will offer regular upgrades While Intel's focus will shift to the data center market, this doesn't mean the PC is dead, it's just no longer Intel's top focus. Renduchintala boasted that despite the shrinking PC market, Intel's operating profit has increased by 30%. He said that was partly due to the high-margin Core i7, which has the highest share of shipments ever, and he expects that trend to continue. Intel has also previously cited VR as another major driver in the chip industry. According to the VRmark benchmark, Intel found that using a Core i6 can improve the performance of VR devices by 36% compared to a Core i3. Renduchintala didn't provide much information about the PC chip product roadmap. However, he confirmed that the upcoming Cannonlake chip has a 15% performance improvement compared to the Kaby Lake chip based on the results of the Sysmark benchmark. Unfortunately, Intel did not announce the product plan for Optane. Previously, Intel has said that Optane storage is a revolutionary product. According to Leifeng.com, Intel Optane storage is a storage solution that introduces revolutionary 3D Xpoint technology non-volatile memory media into memory and SSDs. It is jointly developed by Intel and Micron, and integrates Intel's advanced system memory controller, interface hardware and software IP. It can fully unleash huge performance potential. It is not only more than 10 times faster than solid-state drives, but can even be used as memory. Rob Crooke, head of Intel's memory business, said that Intel is developing the first three generations of Optane technology products, which will be delivered to data center customers soon. But he did not disclose the price of Optane products for PC users. However, Kraznick expressed great optimism about the application prospects of Optane products on the desktop. "Every game enthusiast will be eager for 3D Xpoint," he said. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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