Robert Noyce and Gordon Moore are both semiconductor pioneers who founded Intel. Intel is a multinational tech company founded in 1968. Robert Noyce and Gordon Moore who are both based in Santa Clara, California founded Intel which revolutionized the tech industry with innovative chips and microprocessors. Intel Competitors and Alternatives is the largest semiconductor chip manufacturer globally. PCs are powered by Intel’s processors more than any other alternative on the market.
Intel had 110,800 employees and generated $77.9 billion in revenues with a profit of $20.3 billion in the year 2020. Globally, Intel is the 30th most valuable company with a valuation of $218.83 billion. Intel is ranked #36 overall and the 17th most profitable public firm worldwide by the Forbes Global 2000 list for 2021.
In this 21st century, Intel is facing significant competition that it has faced in its 53 years of history. The company in 2021 split its Data Platform Group into two groups- the AI group and Datacenter. These two groups have several subgroups, which include accelerated computing systems, IoT, graphics, and advanced tech and software.
CEO Gelsinger 2021 unveiled Intel’s new IDM 2.0 Hybrid Manufacturing Strategy. To guarantee its product leadership, IDM 2.0 Hybrid Manufacturing Strategy will try to rejuvenate Intel’s innovation. With IDM 2.0, Intel can protect its market from competitors and alternatives like Qualcomm, VMware, Nvidia, and AMD.
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Intel Competitors and Alternatives
TSMC was founded in 1987, with its headquarters in Hsinchu, Taiwan.
TSMC is the world’s largest semiconductor foundry. Using 3-nanometer tech, the company produces chips thereby making it the go-to producer for advanced semiconductors. TSMC’s revenue in 2020, increased 25.2% to 47.78 billion. TSMC generates more than double Intel’s revenue, its workforce of 56,831 employees is about half of Intel’s workforce.
TSMC’s chips business accounted for 54% of total foundry revenue globally in 2020. In 2021, TSMC spent a record $28 billion to increase its capacity and leadership of the sector.
A $12 billion chip plant in Arizona is being built by TSMC, and it is scheduled to open in 2024. With this facility in Arizona, TSMC will go head-to-head with Intel on American soil. AMD, Qualcomm, and Nvidia rely on TSMC for production. TSMC is Intel’s top competitor and alternative in the chipmaking industry.
AMD was founded in 1969 with headquarters in Santa Clara, California. Semiconductors used in integrated circuits for PCs are manufactured by AMD. AMD’s revenues surged 45%, from 6.73 billion in 2019 to $9.76 billion in 2020. AMD saw a 630% increase in their profits to $2.49 billion in 2020, with a whopping 948% jump in Q4. The tech giant has a workforce of around 10,000 employees which is about a tenth of Intel’s workforce.
AMD develops flash memories, motherboard chips, and graphics processors just like Intel. Its processors are mainly used in gaming consoles, PCs, CPUs, and devices for manufacturing and telecom. In Jan 2021, Intel’s market share was 66.51%, versus 33.49% for AMD thereby increasing the gap in the x86 CPUs market for two consecutive quarters.
Intel had gained 5% to 71.58% at the expense of AMD in June 2021. AMD still powers 28% of gaming consoles. AMD is Intel’s top competitor and alternative with it being the world’s second microprocessor manufacturer with 20.5% of the market.
Nvidia was founded in 1993 with headquarters in Santa Clara, California.
Nvidia is a multinational tech company that designs chips and processing units for gaming consoles, autos, mobile computing, and a range of other markets. Nvidia also develops GPU processors for 3D graphics, virtual reality, and AI-powered devices.
Nvidia’s revenue increased by 53% for FY2021 from $10.92 in FY2020 to a record $16.68 billion. Nvidia has around 18,100 employees and operates globally.
For $40 billion, Nvidia is in the process of acquiring ARM from Softbank. Cambridge-based ARM is one of Intel’s top competitors and a leading semiconductor licensor.
Qualcomm, Microsoft, Google, and Huawei are most of Nvidia’s competitors and they use ARM’s semiconductor blueprint to manufacture their chips. A complaint was filed by them arguing that Nvidia can make it harder for them to access ARM’s technology. Nvidia will overtake AMD to become Intel’s #2 competitor if they acquire ARM.
Samsung was founded in 1983 with its headquarters in Seoul, South Korea.
Samsung has over 300,000 employees and it is the world’s largest memory chip and smartphone marker. The company competes with Intel and controls about 5% of the microprocessor market. Samsung’s revenue was $197.69 billion.
Samsung has immense financial capacity and that is one of the main competitive advantages they have over Intel. Samsung plans to build an advanced logic chip-making plant in Austin, Texas. Construction commenced in the second half of 2021, with plans to install manufacturing tools in 2022 and begin operations in 2023.
Samsung will invest $116 billion over the next decade in its chip design business. Due to Samsung’s huge financial capacity, they’ve grabbed Intel’s market share and become the dominant player in the chip industry.
Qualcomm was founded in 1985, with headquarters in San Diego, California. Qualcomm is the world-leading developer of 5G technologies and mobile phone chips. Mobile phones, broadband devices, and networking equipment to wireless data networks are all connected to Qualcomm chips. In the Android market, Qualcomm integrated circuits and software power is the most consumer electronics.
Qualcomm has over 41,000 employees and generated $23.53 billion in revenues in the year 2020.
Qualcomm’s leadership of the 5G technology is the company’s competitive advantage Qualcomm has over Intel. In 2021, about 450-550 million 5G handsets were sold globally, thereby increasing Qualcomm’s addressable market.
In 2021, the company expected to hit annual sales of $10 billion for the sales of 5G chips which will be up from $6 billion generated in 2020. Qualcomm’s leadership in the chip market makes it a worthy intel competitor. The best Intel alternative for 5G mobile chips is Qualcomm.