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Chapter 1399 – AMD is challenging Intel
AMD invested in a factory in China last year, located in the western region. Of course, this is the result of Feng Yu’s influence and cheaper labor costs.
Feng Yu doesn’t know anything about the central processing unit manufacturing process, but he knows its future development path.
So, Feng Yu painted a big picture to AMD’s President, not limited to PCs only. However, he doesn’t know about the future development of servers as he was not in this industry in his previous life.
Feng Yu only told AMD that CPI should increase more cores. For example, the single-core should be upgraded to double cores or even up to four cores. This will improve its performance in PCs.
Under Feng Yu’s influence, Lenovo Group signed a long-term contract with AMD and had introduced a few PCs using their CPU.
Because AMD’s brand value is lower than Intel’s, their CPUs of the same specs are cheaper, and the market responded well.
This is especially so for the DIY market. Many people realized AMD’s motherboard is a few hundred RMB cheaper than Intel, and the specs are similar to Intel.
The PC component sellers told their customers that the PC technology is developing very fast. Components will be outdated in one year, and there’s no point buying the most expensive parts. They should focus on the specs rather than the brand.
AMD’s motherboard, Nvidia’s graphics card, Lenovo’s hard disk… etc. You can save almost 1,000 RMB to DIY a PC with good specs.
One year later, you can use the 1,000 RMB to upgrade your PC, which is more worthwhile.
Lenovo, Asia’s top PC manufacturer, chose to work with AMD and Nvidia, which increased their sales by a lot. This led to increased profits, and they have sufficient funds to invest in developing new products.
Other PC manufacturers also started to order from these two companies.
That’s why these two companies set up more branches and factories recently.
Nvidia had grown to a scale that can challenge the established market leader, ATI. Nvidia’s market share had grown from one-fifth of ATI’s market share three years ago to almost equal of them now.
Nvidia is also voted to be the company with the highest potential for several years and had gotten other awards like the best company to work for, etc.
Nvidia’s rise caused ATI to fall. ATI’s market share had plunged more than one-third, and their profits dropped.
ATI also didn’t launch any great graphics cards in the recent two years, while Nvidia kept introducing new products. This gave them more media exposure, resulting in more orders from PC manufacturers.
In Feng Yu’s previous life, ATI was acquired by AMD. This is also the reason that resulted in AMD having cash flow issues. They don’t have sufficient funds to develop both CPU and graphics cards.
The CPU market share between Intel and AMD is too big, and AMD invested more into ATI’s graphics card development. They hope ATI can suppress Nvidia to become the market leader. Until Feng Yu’s rebirth, Nvidia and ATI are fighting to be the market leader.
AMD used the profits from their graphics card to invest in their CPU development. This is their strategy. Using their better products to pull up other products. AMD’s graphics card often has high performance, but it is not compatible with Intel’s motherboard.
But Nvidia manages to grow because of this, and Feng Yu wonders if AMD had profited or suffered losses.
In this life, AMD and Nvidia had become one big family. Feng Yu had changed history again.
Luckily, these two companies are separated. Although they have some cooperation, it’s not a lot. Both are operating independently from each other. AMD’s CPU development will not fluctuate like what happened in Feng Yu’s previous life, and he is confident to speed things up.
Nvidia’s graphics card performance kept improving, and upgrades are faster. In Feng Yu’s previous life, Nvidia had gone through several rounds of investments to have the funds to develop quickly. But in this life, Feng Yu provided the funds to let them continue developing new products.
But Nvidia development fund kept increasing, and Kameda Masao suggested Feng Yu stop investing. It’s time to let Nvidia get listed.
Using other people’s money to make money is the best investment.
Feng Yu agreed. It’s too expensive for a hardware manufacturer to develop new technologies!
AMD is a listed company and doesn’t lack funds. After Feng Yu acquired most of the voting shares, he didn’t need to invest anymore. To his surprise, AMD’s development is much faster than he expected.
“Boss, you mentioned that we could use AMD’s double core CPU to challenge Intel as a promotion. We have tested the specs, and our AMD’s performance is indeed better. The board of directors has agreed to this. Where are we going to hold this comparison? The US, China, or Europe?” Ralph called to report.
“Oh? The new double core CPU is ready? Terrific. If we are going to test it in public, do it in China. This will let more IT-related companies notice us.” Feng Yu thought for a while and replied.
“Alright. Is it fine to set the venue in Beijing? I will get AMD to issue a challenge to Intel now.”
“Sure. I will arrange the venue. I think Wind and Rain Building is quite suitable.”
The news reports will mention Wind and Rain Building, and this is free publicity. Feng Yu will not miss any opportunity to promote his companies. Furthermore, the other equipment involves in the test is sponsored by Lenovo Group. This is a good way to promote Lenovo’s brand.
“What? AMD had issued a challenge to us through media?! They want to compare the performance of double core CPU?!” Intel’s CEO, Benjamin, felt frustrated. If they dare to issue a public challenge, that means they are confident of winning.
Benjamin is furious. They are using Intel as a stepping stone to promote their products!
We are compet.i.tors, and you can promote your products through advertising. Why must you challenge us?
Intel had been focusing on servers recently, and their CPU is slightly outdated. They did not expect AMD to make use of this opening!
Benjamin has a bad headache. Intel will lose if they accept the challenge, and AMD’s product will be selling well. But if they don’t accept the challenge, AMD will use it as a promotion tool, and their products will also be selling well.
Regardless of whether Intel accepts the challenge or not, they will not gain anything out of it.
Which b.a.s.t.a.r.d thought of this scheming strategy?!