Thursday, May 25, 2017

Cheaper Chinese microprocessors will democratize productivity [COMPACTIDEA]

It's no secret that Intel's profit margins are outsized. Whether it's a poor fellow from Angola or a rich man in Switzerland, both have to make contribution to Intel's billions of dollars of annual profit. And why just call it Intel's profit? It's the world's people contributing to American profits with their sweat and blood, thus making Americans rich. The significant price different between AMD - also American - and Intel chips is proof already that Intel takes an exorbitant amount of profit on the chips it sells. I not only want this but also believe that a few years down the line Chinese-designed and Chinese-manufactured microprocessors [Godson/Loongson, ShenWei / Sunway, etc.] meant for mass-market consumption will pose a successful challenge to the dominance and outsized profit margins of American firms such as Intel and AMD, based largely on significantly lower prices. The current prices of many of Intel's so-called "higher-end" CPUs are simply outrageous. If you want to be productive, you need a fast machine, but Intel wants you to pay a lot if you want a computer that doesn't irritate you with its slowness. Not good. Must be solved. Everyone has the right to be productive without having to pay a lot.

Update [26-Mar-18]: Not to forget that this same idea applies to Snapdragon versus HiSilicon Kirin and MediaTek Helio and Spreadtrum / Unisoc processors [and also Rockchip]. Phones using the latest Kirin and Helio chips are very fast and virtually indistinguishable from Qualcomm's processors. And these chips cost much less than those from America.

Update [16-Oct-18]: A precedent for how Chinese chips will democratize computing can be seen in low-cost-yet-quite-good smartphones from Chinese companies - Oppo, Vivo, Xiaomi, Huawei, ZTE, Meizu, Lenovo, etc. These phones are very good and yet are quite affordable. If not for these companies, hundreds of millions of people wouldn't have been able to enjoy the fruits of owning a smartphone. The same will happen with powerful chips.

Update [Jan'19]: Huawei's Kunpeng 920 server chip [and TaiShan servers] is another example of how affordable but no less capable Chinese CPUs will bring a revolution.

1 comment:

  1. To be honest, considering the *significant* price difference between high-power AMD chips [e.g., FX 4300 or FX 6300] and comparable-performance Intel chips, it's *stupid* to buy or assemble machines that use Intel chips. You'll simply be contributing/donating to Intel's outsized profits, rather than getting *much higher* bang for your buck.

    In fact, I think that China, Russia and even developing/poor nations in Africa, Asia and South America should bring out guidelines that urge government and private institutions as well as individuals to purchase AMD chips on a preferred basis in order to save significant amount of money. Money that can be directed towards so many other pressing issues.