Forty years ago, Intel invented the x86 computing architecture that is used in laptops, desktops, and data center servers. AMD signed a licensing agreement to manufacture its own x86 chips and compete directly with Intel itself.

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Intel and AMD form alliance to deal with Arm. Photo: SCMP

However, recently, the market share of the two companies has been eroded by Arm - a chip designer whose mobile computing architecture is used by many big names such as Apple, Qualcomm, or in the data centers of Amazon, Microsoft and Alphabet (Google).

One of the factors that helped Arm quickly expand its market share was a contractual requirement that all Arm chips must be able to run Arm software, regardless of which company manufactured them.

In contrast, Intel and AMD use the same x86 technology, but sometimes software has to be adapted to work on their products.

So a consortium of companies including Intel, AMD, Broadcom, Dell, Lenovo and Oracle, among others, was formed to tackle the problem.

“We are excited to bring the industry together to set the direction for future architectural innovations and extend the incredible success of x86 for decades to come,” said Lisa Su, CEO of AMD, in a statement.

(According to Yahoo Tech)

Intel's position is falling rapidly. After Qualcomm, it is Arm's turn to bid for Intel's chip product division, showing that the position of the American semiconductor giant is declining day by day.