01

IntelThe method of blindfold

Recently, there have been media reports that Intel Corp (NASDAQ: INTC) will expand its graphics card research and development business to the field of high-end game graphics cards. Prior to that, there were rumors that the company was developing a data center independent graphics card for video streaming.

Industry insiders say it is much more difficult to develop high-end game graphics cards than online video or parallel computing graphics cards; Intel Corp seems to be challenging a higher level of difficulty, which will take years and a huge amount of money.

In 2017, Intel Corp's long-term liabilities increased from US $13.16 billion to US $25.03 billion, with total current liabilities reaching US $17.42 billion. Current cash and short-term investments are only $14 billion.

In this regard, some overseas analysts could not contain their excitement, saying loudly that Intel Corp's development of consumer-grade independent graphics cards is just like what Sun Tzu said in China's Art of War-soldiers, trickery! Hey, hey, look at him, this Chinese culture guy.

In the eyes of analysts, this is just Intel Corp trying to force his competitors.AMD(NASDAQ:AMD), keep a low profile in the future chip supply contract and reduce the price of Vega M graphics card.

Intel Corp also plans to convince AMD to allow the use of Vega M graphics cards in Core i3 and i5. Intel Corp also wants to confuse another competitor.NVIDIA Corp(NASDAQ:NVDA).

At present, Intel Corp integrates his CPU (central processing unit) and Vega M graphics card into a package. But Intel Corp is improving this model to include more chips.

The Radeon X Vega M graphics card developed by AMD appears only in part of Intel Corp's 8th generation Core i7 at present.

Analysts believe that Intel Corp is not really carrying out independent game graphics card research and development. AMD has never indicated that it has granted the intellectual property rights of Radeon Vega graphics cards to Intel Corp.

Intel Corp did try to develop independent graphics card before, but it ended in failure, so he had to kill the Larrabee independent graphics card co-processor product project in 2009.

In the eyes of analysts, Intel Corp's strengths are only in x86/x64 desktop / server processors, as well as NAND flash products.

Industry insiders said that the chip combination formed by Core i3, 2GB high-bandwidth memory and Vega M graphics card can already be regarded as a high-end game processor. In addition, Intel Corp's high-end games CPU and NAND flash memory products bring profits as high as 30 billion US dollars a year.

Therefore, Intel Corp does not need to take pains to compete with NVIDIA Corp's high-end GeForce Pascal and Volta graphics cards.

Recent trade frictions between China and the United States have also worried analysts.

The Chinese market accounts for the largest proportion of Intel Corp's income. In 2017, Intel Corp's sales in the Chinese market were $14.8 billion.

If Trump does not ease the momentum, China is likely to impose high tariffs on Intel Corp products, and chip sales will be a problem. With this in mind, Intel Corp really can't afford to spend money on developing independent game graphics cards.

In addition, it is not enough to have graphics card hardware. Both NVIDIA Corp and AMD are constantly investing in software development to ensure that their graphics cards can keep up with the rising demand for games.

Therefore, if Intel Corp really wants to develop independent graphics cards, he also needs to invest more money to develop technologies comparable to NVIDIA Corp's SLI, PhysX and CUDA to build a software ecosystem around high-end game graphics cards.

Therefore, analysts believe that Intel Corp, rather than investing heavily in the development of less competitive graphics cards, might as well use the money to upgrade the design of 7 nm CPU.

02

NVIDIA Corp's distant friend and near attack

Recently, NVIDIA Corp's "GeForce Partnership Program" has also been criticized by the industry.

It is reported that gigabyte, MSI and Asustek have joined NVIDIA Corp's "GeForce Partnership Program", whileHewlett PackardHeavyweight contract manufacturers such as Dell and others considered the plan "immoral and illegal" and refused to join.

Analysts say the plan should be aimed at NVIDIA Corp's main competitor, AMD, and is designed to contain AMD.

Lenovo, another contract manufacturing company, has not yet made a statement.

Analysts pointed out that under the GeForce Partnership Program, Asustek will no longer sell AMD graphics cards, only NVIDIA Corp graphics cards. This will undoubtedly enhance the impression that AMD graphics cards are "copycat products" in consumers' minds.

However, AMD is not a vegetarian either.

The vice president of Radeon euphemistically commented on the "GeForce Partnership Program" on the company's website: consumers have the freedom to choose AMD Radeon RX graphics cards, and the company will try its best to allow gamers to buy high-end, high-performance graphics cards, while providing support to partners on an open and fair basis, rather than curbing competition. AMD believes that freedom of choice in PC games is not a privilege, but a legitimate right.

AMD's strategy is to dismantle the alliance around the GeForce Partnership from within.

For example, Asustek launched the graphics card brand AREZ specifically for Radeon two days ago, but it is not affixed with the "player's country" logo.

Analysts say NVIDIA Corp and AMD may wage a marketing campaign in the future. At that time, onlookers who like to watch business war dramas, please prepare your small bench and fruit plate.