Former Intel Corp president Renee James has created a new chipmaker that is producing the server computer processor at the most lucrative business of the world's second-largest chipmaker.
Ampere Computing, backed by Carlyle Group Inc, has sent samples of its first model to prospective customers and has even better ones in the works, James said. It's targeting cloud-service providers such as Alphabet Inc's Google, Amazon.com Inc's web services unit and the other members of the “super seven” that account for an increasing amount of industry sales. The processors, which Ampere is designing in house, use technology from ARM Holdings Plc.
James, who spent 28 years old at Intel, growing up to be the second-highest ranking executive before leaving in 2016, believes the time is ripe to compete in a market. The move to outsource computing. Companies such as AWS and Google build their own hardware and control their own software – they have a fresh approach.
“The future is not going to be like the past,” she said. “The cloud is totally different. What customers want is different. “
The past and present have been rewarded by Intel very well. The company has more than 99% of the market for server chips. Its data-center unit had revenue of US $ 19bil (RM74.31bil) last year and that business's sales surged 20% in the fourth quarter. For 2017, it is generated by operating income of US $ 8.4bil (RM32.88bil). Sales to companies such as Google rallied 35% in the fourth quarter.
James said her products will be in the cloud area where Intel excels. Companies are buying fewer servers.
Ampere's first product is a chip that has 32 processing cores capable of running at up to 3.3 gigahertz. They cost US $ 950 (RM3.720) each and are manufactured by Taiwan Semiconductor Manufacturing Co. using 16-nanometer process technology. It will compare favourably to Intel because it requires much less electricity, she said.
Samsung Electronics took Intel's title in 2017, James knows that scale is important in determining success in chips. She acquired a team that had a 300-person headcount. It was a very difficult task for such companies, for example, that they were not interested in such an enterprise, for example an undertaking, she won the support of a private equity firm Carlyle Group where she had been working as an adviser.
While at Intel, James was the most successful female executive in a US $ 390bil (RM1.52tril) industry dominated by men. She sought the advice of her mentor, Intel co-founder Andy Grove, before making her decision to start her own company. He succeeded in achieving the goal, he said, “I'm going to make it the best in the world.”
To succeed, James will have to make an impression impression on Intel dominance alike have said the market was ripe for alternatives. She harks back to when Sun Microsystems Inc. publicly ridiculed it. Sun no longer exists.
“Nothing lasts forever in this business,” she said. – Bloomberg