AMD troika pulls transformation

General Electric recently announced that it will develop multiple embedded computing modules based on AMD's newly released embedded APU chip. Thanks to its advanced architecture and many bright features, the computing module is expected to be used in a large number of industrial and embedded environments. This news is a great encouragement to AMD, which was in the doldrums last year. Embedded APU results are rapidly turning into business advantages. However, more importantly, this means that an AMD transformation drama started by the embedded chip business is also officially staged.

Embedded APU aims at the future

From CPU to APU to embedded APU, AMD's heavy traditional x86 imprint is gradually being stripped. Starting from the APU, AMD is committed to the development of integrated chips, smartly combining CPUs and GPUs to jointly undertake computing tasks, and achieving higher efficiency and lower energy consumption computing advantages. The emergence of embedded APUs not only means that AMD has completed the re-evolution of integrated chips, but also makes AMD's business start to reach a broader field.

Before GE chose AMD embedded chips, Sony announced that it will use AMD's custom APU chips in the next-generation game console PS4. Similarly, Microsoft also announced that it will use the solution provided by AMD in the upcoming Xbox 720 - the embedded APU. Integrating the technical advantages of CPU+GPU makes AMD almost monopolize the console market. Affected by the continuous growth of game console business, AMD's share price rose by 36% in one week, the highest in ten years.

According to IDC data, by 2016, the number of global embedded devices will increase to 9.6 billion, and high-performance embedded chips will have bright prospects. For AMD, the successful testing of the game console market, coupled with continuous improvement and improved technical advantages, will help AMD seek greater development opportunities in the broader, future-oriented market.

Not long ago, AMD announced the establishment of the Semi-Custom Business Unit (SCBU), which will develop unique and exclusive programs based on rich intellectual property in the fields of microprocessors, graphics cores, and multimedia. The APU customized for the PS4 is the department. The first successful case - this move revealed AMD's determination to deepen the field of embedded. In addition, the return of outstanding technical personnel has also laid an important foundation for talent and technology for AMD in the embedded field.

"Troika" pulls the transformation

Gradually making efforts in the field of embedded chips means that AMD has taken the first step in transition. In the context of the continued sluggish PC market, this step declares that AMD is no longer confined to the traditional PC business and has begun to work harder for a more diversified business layout.

“The biggest change in the past year is that now we are a SoC company. In the future, we will provide the best technology based on our market.” Lisa Su, AMD’s senior vice president and general manager of the global business department, accepted the media at the beginning of the year. This was said during the interview. According to AMD's goal, before the end of 2013, the percentage of revenue for embedded chips will increase from 5% to 20%. According to current development momentum, achieving this goal is not difficult.

In addition to the embedded sector, the two high-growth markets that AMD is targeting additionally have clear plans for entering the country and thus form a "troika" that will drive AMD's overall transformation. Ultra low-power portable client products for tablets and other mobile devices will be unveiled in the middle of May with the APU codenamed Temash, while chips targeting the high-density server market will be available in 2014 based on ARM. The architecture processor is verified.