In the hardware world, there’s always a better product right around the corner, but internally the best companies in the world are developing products two blocks away. Everything a business collects today is used to develop products that will be released tomorrow. This is why it is important in a market as demanding and very competitive as that of hardware components to have products up to the task, and for that, resources, both financial and personal, as well as the development of new media and technologies. , are necessary.
Historically, AMD has been a company that has had the handicap of its fewer resources. This led them to launch products which although competitive were inferior to those of Intel and NVIDIA for a time and in their respective fields. Which doomed the company Lisa Su now runs from launching products based on lower prices and lower margins. The push for its Zen processor has allowed AMD to increase its R&D spending to better prepare for the future.
Booming AMD Increases R&D Spending
The presentation of the new results by AMD these days shows that things are going very well for the veteran company, since they increased their profits compared to the same period of the previous year by 99%. So now AMD is seen as a rich company and behind it are those years when the company was on the verge of bankruptcy and demise.
Given the state of the hardware market and the strong competitiveness of Intel and NVIDIA, since AMD has spentor $ 659 million in R&D, an increase of 43.3% over what was spent the previous year. Let’s not forget the recent takeover of Xilinx by AMD, which will complete the portfolio of resources in the form of technologies, processes and skills to develop future projects.
In order to be competitive, AMD needs to diversify its portfolio beyond what it has done so far. A recent example is that of graphics cards for HPC AMD Instinct, based on its new CDNA and CDNA 2 architectures. Which are designed for high performance computing, artificial intelligence and therefore enter a market in which AMD was not previously present. ‘now. Let’s not forget either its agreement with Samsung to bring its gaming GPUs to the market for very low-power devices such as tablets and smartphones and its presence in the console market, where we could see new iterations. consoles from SONY and Microsoft as a couple. years and are now in development.