Intel to Abandon Arc Discrete Graphics Business: A Second Time Around?
Intel isreportedly considering abandoning its Intel Arc discrete graphics business, marking a second retreat from thegraphics card market. This comes amidst a broader strategic shift by the company, including a decision to discontinue its integrated memory technology in CPUs.
The decision to dropArc graphics is attributed to CEO Pat Gelsinger’s belief that the demand for standalone graphics cards will diminish as integrated graphics become more powerful. This statement,while seemingly forward-looking, has raised eyebrows within the industry. The Arc line, launched in March 2022, has yet to gain significant market share, facing stiff competition from established players like Nvidia and AMD.
While Intelsees potential for Arc in the data center GPU market, Gelsinger’s focus appears to be on core CPU development and manufacturing. This strategy, however, raises concerns about Intel’s reliance on its struggling foundry business.
Thedecision to abandon integrated memory technology in CPUs is another sign of Intel’s shift. While the technology offered benefits like reduced latency and smaller device size, it also increased manufacturing costs. This decision, while potentially beneficial for Intel, may not be welcomed by OEMs who prefer the flexibility and cost-effectiveness of separate memory modules.
Intel’s current financial situation is precarious, and the company is facing pressure to streamline operations and focus on its core competencies. While abandoning the Arc graphics business may seem like a short-term solution, it raises questions about Intel’s long-term strategy in the graphics market.
The industry is left wondering if Intel willeventually return to the graphics card market for a third time. The company’s history suggests that a return is not entirely out of the question. However, the future of Intel’s graphics ambitions remains uncertain, and the company’s focus on CPUs and its struggling foundry business may leave little room for a renewed push into thegraphics market.
References:
Views: 0