AMD Says New Chips to Rival Intel in Low-Power Servers

Advanced Micro Devices Inc. (AMD), struggling to compete with Intel Corp. (INTC) in the market for processors that run server computers, unveiled three new products aimed at making a dent in its larger rival’s sales.

AMD will offer “Berlin” chips for data-center machines that handle basic tasks such as Web hosting, “Warsaw,” for powerful servers that will compete at lower prices, and “Seattle,” AMD’s first server chip based on ARM Holdings Plc (ARM) technology.

By offering computer makers and data-center operators cheaper and more power-efficient processors, AMD is seeking to reduce Intel’s market share of more than 95 percent. ARM’s technology, which is dominant in smartphones and tablets, is ideal for machines bought by Google Inc., Facebook Inc. and Amazon.com Inc., which use large numbers of servers to deal with user requests such as e-mail and website log-ins, said Andrew Feldman, head of AMD’s server business.

“Five years ago servers were pretty boring, but as we look forward it’s the landscape of one of the biggest battles technology has ever seen,” Feldman said. “It will create new winners and losers. It will change the status quo.”

AMD’s ARM-based chips will go on sale in 2014, the company said. Processors using ARM’s technology will eventually take “double digit” market share, Feldman said. Part of those gains will come as AMD is able to produce versions that are tailored for specific customer software, something that Intel can’t do, he said.

AMD ended 2012 with 4.3 percent of sales of servers running on personal-computer chips, according to Cave Creek, Arizona-based Mercury Research. Intel had the rest.

To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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