In the hardware world, there is always a better product around the corner, but internally, the best companies in the world are developing products that are two streets away. Everything that a company collects today is used for the development of products that will come out tomorrow. That is why it is important in a market as demanding and highly competitive as that of hardware components to have products up to the task and for this, resources, both financial and personal, are necessary, as well as the development of new media and technologies.
Historically, AMD has been a company that has had the handicap of its fewest resources. Which has led them to launch products that although competitive were inferior to those of Intel and NVIDIA for a time and in their respective fields. Which doomed the company Lisa Su now runs to launch products based on price and lower margins. The push from its Zen CPU has allowed AMD to increase its R&D spending to be more prepared for the future.
AMD in bonanza increases its spending on R&D
The presentation of the new results by AMD these days shows that things are going very well for the veteran company, since they have increased their profits compared to the same period of the previous year by 99%. So now AMD is considered a rich company and behind are those years when the company was on the verge of bankruptcy and disappearing.
Taking into account how the hardware market is and how highly competitive both Intel and NVIDIA are, since AMD have spentor 659 million dollars in R&D, an increase of 43.3% compared to what had been spent the previous year. Let’s not forget the recent purchase of Xilinx by AMD, which will complement the portfolio of resources in the form of technologies, processes and skills to develop future projects.
In order to be competitive, AMD has to diversify its portfolio beyond what it has done so far. A recent example is the graphics cards for HPC AMD Instinct, based on its new CDNA and CDNA 2 architectures. Which are designed for high-performance computing, artificial intelligence and therefore enter a market in which AMD did not have a presence until the moment. Nor can we forget its agreement with Samsung to bring its gaming GPUs in the market for very low consumption devices such as tablets and smartphones and its presence in the console market, where we may see new iterations of consoles. from SONY and Microsoft in a couple of years and are now in development.