ENTERTAINMENT

AMD invests in New York’s new CPU R&D Facility

AMD’s market share and revenue increased, and so did AMD’s research and development budget. AMD’s CPU division continues to grow. It’s not only about new hires. It is building a new research-and-development facility in Poughkeepsie (New York).

AMD’s website lists available positions (via Tom’s Hardware & @mikeev). This shows that they are looking for serious talent. There are 25 engineering positions available, most of which are located in Poughkeepsie. These positions include verification, performance, and CPU core engineers. These positions are not the same skills you would learn in high school and represent a substantial financial investment by AMD.

The United States government will also welcome this news as it seeks to increase domestic chip manufacturing capacity. AMD could have built the facility in Asia at a lower cost. This alone indicates that AMD’s finances remain in a good place.

AMD’s financial reports show that its net revenues increased by 70% between March 2021 and 2022. Its net income also increased by more than 41%. AMD can splash the cash.

Is it possible to see the results of this new hiring spree in the near future? It will take years. Zen 4 is about to be released. Zen 5 work will have advanced well if Zen 5 launches in 2023-2024. This means that products with design input from the new facility will likely debut in 2025, although the verification engineers still have plenty of work.

This is a far cry from AMD’s doldrums in the early 2010s. It was considered a possible takeover target when its share price fell below $2.00. The company’s market share grew as Ryzen and EPYC products gained market share. It is encouraging to see that, after the shareholder dividends have been paid out, there is enough money left to increase R&D spending significantly. Healthy competition is good news for consumers and forces Intel to be aggressive to stop AMD from gaining further market share in its lucrative CPU business.

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