With other chipmakers like Broadcom having been ruled out earlier, Sony awarded the contract to AMD instead of Intel.

AMD is also the chip manufacturing partner for the PlayStation 5 and PlayStation 5 Pro. Meanwhile, compatibility issues have been a topic of discussion between Sony and Intel for “months.”

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Intel loses chip contract to AMD. Photo: TheVerge

However, Intel's bid was blocked due to a failure to agree on a profit split for each chip as TSMC handles the manufacturing process.

The recent problems with the Raptor Lake CPU have left Intel out of the AI ​​chip race and forced it to cede the production of some of its next technologies to a Taiwanese (Chinese) chip foundry.

The US semiconductor giant's chip business also lost $7 billion in 2023, partly leading to the move to lay off 15,000 employees last month.

Not stopping there, the company's chip factory in Ohio has been delayed. A rare bright spot is that they have closed a contract for advanced 18A chips with Microsoft. According to TheVerge , this contract could be worth up to $15 billion.

Manufacturing customized chips based on other companies' designs is how TSMC became the world's largest contract chip foundry today.

On AMD's side, although the brand also lags behind Nvidia in the field of leading AI chips and GPUs, data center products still account for more than half of sales.

AMD CEO Jack Huynh said the company's priority is to merge gaming graphics with data centers at scale at lower cost.

Intel supports Japan's initiative to 'share' semiconductor lithography machines Intel and Japan's National Institute of Advanced Research have agreed to build an advanced semiconductor research and development (R&D) facility in the East Asian country, aiming to take advantage of Japan's strengths in foundry equipment manufacturing and the materials industry.