Intel threatens big losses if Google starts buying chips from Qualcomm
Last year, Qualcomm presented a prototype server processor with 24 cores. The developers said that it is based on the ARM architecture and supports the Linux platform.
Later it became known that Qualcomm together with Chinese partners founded the company Guizhou Huaxintong Semi-Conductor Technology Co., Ltd. Production of new processors will be conducted there. The amount of capital at the initial stage of the joint venture will reach $ 280 million. Qualcomm has been cooperating with Chinese partners for 20 years.
This year should be the "debut" of the processor. Previously, information about potential customers of the product was kept secret.
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According to Bloomberg, next week, Google may officially admit to using Qualcomm server processors. February 11, Qualcomm just arranges an event for investors, where there will be representatives from Google.
In any case, the companies are already collaborating, and if the Internet giant likes the finished product, it will use it in their server systems.
Google buys quarterly 300,000 processors from Intel every quarter, and the cost of purchasing this company's equipment has tripled since 2011, so even nominal competitors can be a decisive argument for bargaining with Intel, the main supplier of server processors for Google.
Server processors have a higher yield, which attracts new players to the segment. It was server solutions that provided Intel in the past quarter with half of operating profit, although in terms of revenue, their share did not exceed one third. Working with Qualcomm, Google can get processors optimized for its tasks.
Google can replace Intel server processors in their data centers with Qualcomm chips. Such a replacement Internet company can do quite easily, experts believe Bloomberg. Of course, until Qualcomm chips can not completely oust the representatives of x86-compatible architecture, but Intel may lose significant sums if Google truncates cooperation with it. Therefore, Google’s decision will not be fatal to Intel.
Currently, Intel is the world's largest supplier of server processors: the corporation supplies 99% of the processors that are used in servers.
Qualcomm is the largest manufacturer of mobile processors.
Later it became known that Qualcomm together with Chinese partners founded the company Guizhou Huaxintong Semi-Conductor Technology Co., Ltd. Production of new processors will be conducted there. The amount of capital at the initial stage of the joint venture will reach $ 280 million. Qualcomm has been cooperating with Chinese partners for 20 years.
This year should be the "debut" of the processor. Previously, information about potential customers of the product was kept secret.
')
According to Bloomberg, next week, Google may officially admit to using Qualcomm server processors. February 11, Qualcomm just arranges an event for investors, where there will be representatives from Google.
In any case, the companies are already collaborating, and if the Internet giant likes the finished product, it will use it in their server systems.
Google buys quarterly 300,000 processors from Intel every quarter, and the cost of purchasing this company's equipment has tripled since 2011, so even nominal competitors can be a decisive argument for bargaining with Intel, the main supplier of server processors for Google.
Server processors have a higher yield, which attracts new players to the segment. It was server solutions that provided Intel in the past quarter with half of operating profit, although in terms of revenue, their share did not exceed one third. Working with Qualcomm, Google can get processors optimized for its tasks.
Google can replace Intel server processors in their data centers with Qualcomm chips. Such a replacement Internet company can do quite easily, experts believe Bloomberg. Of course, until Qualcomm chips can not completely oust the representatives of x86-compatible architecture, but Intel may lose significant sums if Google truncates cooperation with it. Therefore, Google’s decision will not be fatal to Intel.
Currently, Intel is the world's largest supplier of server processors: the corporation supplies 99% of the processors that are used in servers.
Qualcomm is the largest manufacturer of mobile processors.
Source: https://habr.com/ru/post/298440/
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