Intel loses $30 billion chip contract

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.

It is known that in 2021, Intel Foundry - a contract chip factory - was put into operation. Normally, PlayStation will consume more than 100 million units in 5 years. Thus, the manufacturer can achieve an estimated profit of 5-% lower than AI chips but will have a stable source of money because the sale of game consoles lasts for many years.

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 chips are mainly developed by AMD, so ensuring compatibility with previous versions of the PlayStation would be costly and require more engineering resources from Intel. Therefore, this may be the reason why Intel rejected Sony.

There were rumors that Sony could have paid Intel $30 billion over the life of the deal if both sides had signed on. 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 being surpassed by competitors like AMD and Nvidia.

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