Intel loses $30 billion chip contract

Báo Đô thịBáo Đô thị18/09/2024


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

Intel Foundry, a contract chip factory, is expected to start operating in 2021. PlayStation typically sells more than 100 million units in five years, so the manufacturer may see an estimated 5-percent lower profit margin than AI chips, but will have a stable source of cash flow due to the multi-year sales of consoles.

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

However, sources revealed that Sony and Intel failed to reach a common agreement after many negotiation meetings.

Sony relies on experienced third-party suppliers to manufacture PlayStation chips. However, the console's processors must be backward compatible, allowing users to install older games on new hardware.

The PlayStation chipset is primarily developed by AMD, so ensuring compatibility with previous versions of the PlayStation would be costly and require more engineering resources from Intel. This may be why Intel turned down Sony.

It was rumored that Sony could have paid Intel $30 billion over the life of the deal if the two had signed. However, that didn’t happen, and the PlayStation 6 chip contract ended up going to AMD.

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

According to CNBC, Intel is gradually losing its halo in the chip industry as it loses its chip manufacturing advantage to TSMC and is surpassed by competitors like AMD and Nvidia.



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

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