Intel has announced a new data centre chip that can reportedly provide more than double the amount of compute power than existing chips. The announcement comes as the industry looks to lower its electricity consumption following pressure from lawmakers and activists. 

Data centres, which power the internet and online services, are massive consumers of electricity. Technology companies have been facing increasing demand for higher efficiency from their semiconductors and products.

In 2022, Intel announced it was committed to achieving net-zero greenhouse gas emissions by 2040. 

On Monday (28 August), Intel claimed its soon to be launched Sierra Forrest chip will be able to operate 240% better per watt than its current generation of data centre chip, according to Reuters. This is the first time the US company has ever disclosed its efficiency figures.

The tech giant’s announcement of an energy efficient-focused chip follows its rival, Ampere Computing (AC), being first to market. 

US-based AC, which was founded by ex-Intel executives, found success in releasing chips which handle cloud computing work with more efficient energy consumption. 

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By GlobalData

Along with Intel, AMD has also moved to release a similar energy-efficient chip to compete with AC, which is set to be released in June. 

Intel reported extremely disappointing first-quater results this year, with a whopping 133% annual decrease in earnings per share. The company reported a reduction of almost 36% revenue year over year to $11.7bn.

The tech giant is hoping to make back some of its lost market share with the release of its Sierra Forest chip. AC and AMD now control more of the market in data centres than Intel. 

In August, Intel announced that it had mutually agreed with Tower Semiconductor, to terminate its previously disclosed agreement to acquire the Isreaeli semiconductor company.

According to GlobalData’s Deal Database, the deal was terminated due to the inability to obtain i the regulatory approvals required under the merger agreement.

The US company was looking to aquire Tower Semiconductor to “accelerate it’s path to becoming a major provider of foundry services and capacity globally,” the research firm stated.