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For AMD, Moore’s Law no longer applies?

For decades, the semiconductor industry has followed Moore’s Law, formulated by one of Intel’s founders back in 1965. The law states that a doubling of the number of transistors in processor chips will occur every two years.

Intel is committed to this law and plans to keep it in effect for the next 10-15 years, but AMD seems to be behind schedule.

Analysts at Raymond James & Associates believe the company is out of pace and has no chance of catching up with Moore’s Law.

For the first time, signs of a trend appeared in AMD during the transition to 65nm technical process, analysts say, and with the introduction of 45nm technology, the situation will only worsen.

Raymond James & Associates says technological lag will inevitably lead to a worsening of the company’s financial condition. AMD Desktop Processor Prices Down 65% YoY. They now range from $ 68 to $ 251.

At the same time, this price reduction makes AMD processors much more attractive for developing countries, to which the analytical company CRT Capital Group includes Brazil, Russia, India and China. This will allow AMD to survive and prevent Intel from gaining a monopoly in the market, they say.

Otherwise, as analysts aptly put it, Intel will receive a “license to print money.”. But we, the buyers, do not want this, do we?

Source: Reuters

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