Intel Facing Onslaught in PC and Server Markets

Intel, the world's largest semiconductor company, is under siege again. Having missed out on the mobile boom over the past decade, it now faces rivals pushing into personal computer and server markets, challenging the chip group's longtime leadership in these areas.

For now, Intel is still in relatively good shape. More than 80% of PCs in the world use its core processors, which contributes to 55% of the Santa Clara, California-based company's revenue even though the rise of mobile devices has led to a slump in PC demand.

The U.S. chip kingpin further enjoys a near-monopoly in the server chip field, a fast-growing area offering better margins than PCs, where it has a market share of more than 98%.

But this could change, with chipmakers ARM, AMD, Nvidia and Qualcomm all highlighting plans to get into PCs, servers or both during Taipei's annual Computex tech expo that took place in the past week.

Strong Contenders

The SoftBank-owned British chip innovator ARM has overpowered Intel in the mobile age, and now it wants a piece of the PC chip group's pie as well, at a time when growth in the smartphone market is softening.

Ninety per cent of mobile devices in the world, including smartphones, tablets and wearable items, use ARM's chip architecture, known for their power efficiency.

ARM licenses its chip architecture to others, and many major global tech companies including Apple, Qualcomm and Samsung then create their own mobile processors using the British company's designs.

Qualcomm, the world's No.1 mobile chip provider, announced for the first time during Computex that it would partner with ARM to offer core processors for PCs.

Qualcomm and ARM have no presence in the PC market yet, but they may undermine Intel's dominance when leading PC brands including HP, Lenovo Group and Asustek Computer release products using Qualcomm processors before the end of...

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