I think we’re all well aware of the advancements and power of the latest microprocessors in devices these days. My realization came when Tegra 3- based games starting to roll out looking very much like the console games I’ve been playing for years, not to mention the Android-powered satellites and the in flight entertainment system on Boeing’s new super-jet, the 787.  It’s almost unbelievable what these tiny processor are capable of.

Given the power and potential of the tiny processors, today AMD announced that it’ll begin development of chips based on the designs of ARM chips, similar to the ones used in mobile devices. Since these chips consume less power, AMD says the new chips will be very efficient and offer a way for customers to cut the costs of running a data center by reducing power consumption and cooling needs. So, you can see the draw of the tiny processors given the huge cost-savings they’ll be capable of in data centers.

Once a power player in the technology industry, this new move couldn’t come at a better time with AMD’s struggling sales and margins. This move would immediately provide a new competitive advantage over their rival Intel since Intel doesn’t currently sell microprocessors based on ARM designs. You’ve got to think that this move will provide a boost in sales, if successful, while also reducing shipping costs thus adding even more to the bottom line. AMD aims to have the chips available by 2014.

source:  The Wall Street Journal