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   In the second half of last month, communication chip maker MACOM reached a final agreement to acquire Applied Micro for about $770 million. Recently, it has decided to leave only its high-speed carrier and data center networking chip business to split its ARM-based server chip business. ARM has caused a big blow in the server chip market, which is a great news for Intel.
Why is it that ARM's heavy attack ARM has occupied a monopolistic market position in the mobile market? Intel's X86 architecture can basically fail in the mobile market. The other two architectures MIPS and Power have almost negligible market share. In this case, ARM hopes to enter the PC market and server market where Intel dominates.
The PC market currently uses Google's chromebook to help ARM take advantage of it. Although chromebook can use Intel's processor, it can also use ARM architecture processor. However, considering the ARM architecture, the processor is much cheaper, so most chromebooks. They all use ARM architecture processors. IDC refers to the shipment of chromebooks in the US market in the first quarter of this year to more than 1.8 million, surpassing the fourth largest PC brand in the US, setting a new high.
In fact, Apple's A-system processor is also ARM architecture. It is also trying to integrate the mobile operating system iOS with the desktop operating system OSX, which means that it may use the A-system processor in the Mac in the future to help ARM make progress in the PC market. .
Compared to the breakthrough in the PC market, ARM is very difficult in the server chip market. In addition to Applied Micro's production of ARM-based server chips, and the collapsed Calxeda has produced ARM-based server chips, AMD has also developed ARM-based server chips, but it seems to be focusing on X86-based server chips, Samsung. NVIDIA, Qualcomm, etc. have all said that they want to develop ARM architecture server chips, but now only Qualcomm puts into action.
However, it is clear that Applied Micro splits the ARM architecture server chip business into more important indicators. Applied Micro and Calxeda are the first companies to develop ARM architecture server chips, but Calxeda has closed down in 2013, Applied Micro adheres to today and its ARM The architecture server chip has been adopted by HP to launch server products, but the news released from MACOM indicates that the business has annual sales of only $66 million and decided to split the business. AppliedMicro's ARM architecture server chip has finally gained this end of the game for many years, of course, it is a major blow to the ARM architecture server chip.
It is a great news for Intel. Intel's two important businesses are PC chips and server chips. However, due to the stagnation of the PC market, global PC shipments in 2015 fell 8% year-on-year to 289 million units, the lowest level in nearly eight years, such as the rapid growth of the two-in-one tablet IDC, this year to 2020 PC shipments The amount can only remain stable, and it is clear that the ARM camp PC market has achieved a breakthrough, in which case Intel began to focus on the server chip business.
In 2015, Intel's server chip business accounted for less than 30% of its revenue. However, the analysis generally believes that the business provides more than half of the profits, and so far it has a market share of nearly 97% in the server chip market, AMD, power Architecture and ARM architecture server chips together account for about 3% of the market share, but the current ARM camp to do the longest server chip Applied Micro is abandoned ARM architecture server chip business, which can greatly weaken the ARM camp threat to the business .
As for another company in the ARM camp, Qualcomm, although still insisting, but because its mobile communication patent advantage is weakened, facing fierce competition in the mobile chip market, whether its subsequent willingness to continue to invest resources to promote the development of its ARM architecture server chip business is worth considering And the end of AppliedMicro also reminded Qualcomm that the server chip market is not as easy as imagined. Wall Street also suggested that Intel will Qualcomm mergers and acquisitions to eliminate the threat to its server chip business, while helping Intel enter the mobile market to combat the ARM camp. Other chip companies.
In fact, the difficulties that ARM has to enter the server chip market are as big as the difficulties Intel has encountered in the mobile market. Over the years, Intel has built a strong hardware and software ecosystem in the server market, compared to the PC market and the mobile market. The market emphasizes the characteristics of stability and reliability, which is why many server providers and enterprises with large data centers are afraid to adopt ARM architecture server chips.
In recent years, Intel has also enhanced its overall advantages by acquiring FPGA manufacturer Altera and developing high-performance storage technologies such as 3D Xpoint technology to meet the needs of customers and enhance its competitive advantage in the server chip market. Applied Micro is split into ARM. The architecture server chip business has undoubtedly brought a big positive news to Intel.