After the PS5 Pro, Sony is focusing on the next generation of PlayStation.
A report from Reuters says that beyond the PS5 Pro, the battle to win a contract for the chip manufacturing of a future PS6 came down to AMD vs Intel. According to the report, Broadcom was eliminated earlier and ultimately AMD won the battle.
We know that AMD makes the chip in the PS5 and PS5 Pro. So, maintaining backward compatibility in a possible move was part of the discussions between Sony and Intel in 2022. The executives and engineers at both companies discussed this at length for months.
However, Intel’s bid was blocked because they couldn’t agree on how much profit Intel would make from a chip it would design. The manufacturing process was slated to be handled by TSMC.
In the recent AI boom, Intel has been a bystander and ceded the manufacturing of the next gen tech to TSMC. Intel is now looking to rebuild its capabilities in the manufacturing sector. Intel lost around $7 billion last year in the chipmaking division. Just last month, the company announced 15000 layoffs.
The upcoming chip plant in Ohio has been delayed for Intel. However, the company has secured a Microsoft contract for its advanced 18A chip process.
AMD has also been on the sidelines in the AI revolution. Nvidia is clearly leading the AI chip market and flagship GPUs. The data center products from the AMD now make up over half of its revenue.
According to Reuters, this deal was worth around $30 billion in revenue for Intel but they’ve lost it to AMD.
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