Why are AMD's [CPU] chips cheaper than Intel's?
Let's face it; right now Intel is perceived as the best manufacturer of CPUs. Ryzen might be an excellent product, but a lot of people are familiar with Intel thanks to their marketing and big obvious stickers. Currently, the only way for Ryzen to succeed is to offer an interesting value proposition. Intel has been the market leader for so long, and has been able to steadily hike up their prices. AMD is able to offer lower prices by thinking that even though the margins are lower, the amount of CPUs sold should make up for the difference - at least somewhat. From a technical standpoint, though, Ryzen chips can be cheaper to manufacture due to use of the 'Infinity Fabric' technology employed, which allows for AMD to make very high core-count CPUs with modules of 4 cores (thank you Connor Tarabocchia for mentioning this!).
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It's the exact same in the GPU market, except that AMD isn't making the same sort of breakthroughs. NVIDIA is just toying with Radeon at this point - Volta is almost certainly ready, yet NVIDIA can afford to wait before announcing it considering that everyone is still happy to buy abnormally pricey 1080 Tis. Vega was supposed to change the game, but it didn't. Polaris isn't succeeding either considering the unmatched power efficiency and brand name that the 1060 offers. The only way AMD can sell cards right now is pricing, brand loyalty and mere processing power that isn't useful for gaming.
AMD is cheaper because of brand name (recognition) in the CPU department, and cheaper in the GPU department because of a worse product.
And user name Atomic Nixon Says
Wow. Not one person mentioning the manufacturing process? Here’s the REAL reason, die size. The silicon wafers that chips are made of vary in purity, but none are perfect. What this means is that every chip has a chance of having imperfections of varying effect in it. This makes the size of the die one of the most critical factors. AMD produces small core units which means that over 80% of their chips manufactured have all eight cores fully operational. Intel on the other hand, has stuck with monolithic die architecture and their chips are massive, as the name would suggest. Estimates for the yield on top Xeon chips are around 3–5%, an absolutely huge difference, and this is why Intel wants up to $11,000 for them. Yes, Intel’s flagship multi-core I9 chips are also repurposed Xeon’s which they would far rather charge that much for, but such is the price of bragging rights to being #1. In addition, since packages like Threadripper and Epyc are constructed from four “chiplets†AMD can sort their chips, a process known as binning, and select the best to be paired with the best, so no single core on their packages will bring the whole thing down. This all translates to a massive advantage to AMD, hope you don’t own any Intel stock.
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So what do you think about amd ?, Or are you using Amd right now, let me know what is your pro and cons about the CPU!
And that its i hope you enjoy and stay tuneÂ
