In the fast-paced computing world, technology continues to evolve and make vast strides forward. One long-standing rivalry in the industry revolves around major manufacturers, Intel and AMD. Both have consistently pushed the boundaries of computing power, yet they continue to utilize 12-nanometer (nm) technology. This might seem curious to some, given that smaller nodes are becoming increasingly popular. This article delves into why Intel and AMD still use 12nm technology, exploring what it brings and why this choice might make perfect sense in the broader context of computer hardware manufacturing.
Cost-effectiveness of manufacturing using.
Intel and AMD, two of the leading giants in the semiconductor industry, still use the 12nm technology instead of moving towards smaller and faster lithographies like 7nm and below. The primary reason revolves around the cost-effectiveness of manufacturing. Despite notable improvements in performance and energy efficiency that smaller nodes offer, the research and development, equipment update, and production costs of advanced lithography are significantly high. Producing chips with smaller nodes requires more advanced, and thus more expensive, equipment and processes. Furthermore, the smaller the transistor size, the higher the manufacturing complexity, leading to a greater probability of defects, negatively impacting yield rates. This increases total production cost. As a result, staying with the 12nm manufacturing process has become an economically viable strategy for Intel and AMD, allowing them to maintain a balance between performance, power efficiency, and fabrication costs, ultimately determining the final product’s price. Offering their products competitively is key to survival in the global market. Thus, until the fabrication cost on smaller nodes becomes more manageable, 12nm technology remains a financially reasonable manufacturing choice.
Nm technology
Nm technology refers to the size of the transistors and other micro-scale parts in computer chips. Theoretically, the smaller these parts, the faster and more efficient the processor can be. The measurement is in nanometers (nm), where 1nm is one billionth of a meter. Intel and AMD, leading manufacturers of computer processors, continue to use 12nm technology for several reasons. Transitioning to smaller, more advanced nm technology requires significant research, development, and financial investment. This investment has to be balanced with market demand and potential return. Secondly, the 12nm technology is highly reliable and is sufficient for many computing needs. With sophisticated optimizations, processors using 12nm technology can still deliver the high-quality performance required by the majority of users. Thus, there is demand for these chips.
Additionally, smaller nm technology faces challenges such as increased manufacturing complexity, higher costs, and quantum effects that can affect performance. For instance, as the nm scale decreases, transistors become harder to switch off completely as the ‘leakage current’ increases, leading to energy inefficiency. Therefore, while Intel and AMD are pushing boundaries with smaller-size technologies, they continue to manufacture 12nm technology processors due to their balanced offer of reliability, cost-efficiency, and performance.
Future implications for intel and amd’s use of
Despite rapid technological advancements, major processors like Intel and AMD still utilize the 12nm technology for various reasons. Firstly, employing newer technology, such as 5nm or 7nm, requires a significant investment in equipment and process changes, making it financially inappropriate for these companies. Secondly, the 12nm process is more mature and stable than its new counterparts. It facilitates an optimal balance between performance, energy efficiency, and production costs. While smaller nodes offer greater power efficiency and performance, they also introduce difficulties in yield rates and higher production expenses. As the 12nm process guarantees reliable yields, Intel and AMD can produce high-volume chips without compromising quality.
Additionally, these serve a specific market segment that doesn’t necessitate the highest-performance chips, thus justifying the continued usage. However, future implications indicate a shift towards more advanced nodes due to dynamic market demands for better performance and power efficiency. As fabrication technology becomes more accessible and economical, Intel and AMD will gradually transition to improved nodes to maintain their market positions.
Nm technology
Intel and AMD have continued using 12nm technology for several reasons :
- This highly reliable technology has proven to offer a perfect blend of performance, power, and price, making it an attractive choice for both manufacturers.
- Developing smaller processors, such as 7nm or 5nm, comes with high risk, high cost, and complex manufacturing processes. Despite offering the potential for greater efficiency and performance, these smaller chips are more prone to manufacturing defects, which could lead to higher production costs.
- Transitioning to a smaller node requires significant research and development, contributing to costs.
While striving for innovation, Intel and AMD must ensure product reliability and maintain cost-effectiveness. As such, until the smaller node sizes can guarantee these aspects, it is more logical for these tech giants to stick with the reliable 12nm technology. However, both companies continuously invest in research and development for smaller nodes, yet still opt to retain 12nm technology for specific market segments or product lines. Staying with 12nm is a strategic decision allowing them to remain competitive and ensure product quality while advancing towards smaller, more efficient technologies.
Intel:
They stay on 14nm because they’re unable to get their 10nm process yielding. It has been 2–3 years since Intel originally planned to launch 10nm parts on volume from the date of this post. Their 10nm process is horrible, with worse power characteristics than 14nm and terrible yields. The worst power could be ignored if it improved the cost. However, due to those aforementioned low yields, 10nm is worse in every meaningful way in terms of profit for Intel.
Intel massive screwed up their inplomention of the sub-14nm process. It is such a massive failure that they will be uncompetitive for at least a year or two once they compete with 7nm parts from AMD and various AMR vendors hit the market.
AMD:
AMD does not own a foundry and relies on partners to manufacture its parts. AMD has the option to push into TSMC’s 10nm process but decided the improvement was not worth the added cost*. So AMD waited for 7nm. GlobalFoundries (spun off from AMD’s old fabs) canceled their 7nm due to fiscal concerns. So AMD was all in on TSMC.
And AMD is recently working with TSMC, demonstrating their 7nm “Rome” processor. But they have not announced release dates. At the same time, Apple has been shopping millions of units for months.
Why is AMD waiting despite using the same process? There are two simple reasons:
- Cost. Nodes get cheaper as time goes on. The cost per wafer can drop massively in a few months from the start of the HVM.
- Validation. AMD is pushing their server CPUs first on 7nm, as they are the real profit center for CPUs. The validation process for these CPUs can take over a year. So while AMD May got their first “Rome” from TSMC at the same time Apple did their A12, AMD needs many more months before launching.
And so, AMD is also waiting, with 7nm high volume production for their CPUs, which will probably start in 1Q2019 and launch in 2Q2019.
*New modes require much higher one-time costs than older ones. AMD would manufacture on 7nm anyway, and their roadmaps/timelines meant 10nm would not bring a meaningful TTM advantage over 7nm.
Conclusion
Despite the advancements in the microprocessor industry and the emergence of smaller nm technology, Intel and AMD continue to utilize 12 nm technology due to its reliability, cost-effectiveness, and satisfactory performance levels. While they are also gradually implementing newer technologies, the transition requires strategic planning and time due to various technical and economic challenges. Ultimately, using 12nm technology proves to be a balanced strategy that ensures consistent supply, maintains quality performance, and upholds a competitive edge in the market.
