Intel will now launch new chips with data centres uppermost in its mind, whereas before it would consider the consumer market first.
This is according to a report on Fool.com, the investment news website, which quoted Diane Bryant, Intel’s Data Centre Group as its source.
Bryant said that Intel had previously placed a higher priority on the consumer market because of the scale.
The size of the consumer market enable Intel to scale up its manufacturing to a level which made it commercially sensible.
But now, with the growth of data centres and the ongoing slow decline in desktop computers, things have changed.
Now, data centres will get Intel’s new chip designs first, because the demand is strong enough.
“You need a lot of wafers going through the factory in order to get a new process technology up and running; we didn’t have the volume back then. We clearly have the volume now,” Bryant said.
Intel claims it has “over 90 per cent” share of the data centre market, which probably means its chips are in the vast majority of computer equipment at a data centre, including CPs, chipsets, boards and so on.
The company is also strong in the storage market, where it claims to have more than 80 per cent market share.
But its share of the networking marketing is less than 10 per cent, according to the company.
As a percentage of the total $56 billion 2014 revenue of Intel, the data centre business unit had about 26 per cent, while the personal computer segment had 62 per cent.
Intel is estimated to be the largest semiconductor manufacturer in the world by revenue, according to ValueWalk.com.
The company is looking to data centres for further growth this year and going forward, as the PC market seems to be in inexorable decline.
Having said that, Intel faces challenges growing its data centre business, according to analysts at SeekingAlpha.com, who point to Gartner forecasts that suggest political uncertainty in various parts of the world will limit the company’s growth to below 10 per cent.