Intel lost out to AMD in 2022 on Sony PS6 chip contract, Reuters reports

Intel (INTC) lost out to AMD (AMD) and TSMC (TSM) in 2022 on a contract to design and fabricate Sony‘s (SONY) PS6 chip, a major blow to its contract manufacturing unit as a deal could have amounted to billions of dollars of revenue and fabricating thousands of silicon wafers a month, Reuters’ Max A. Cherney reports. A dispute over how much profit Intel stood to take from each chip sold to the Japanese electronics giant blocked Intel from settling on the price with Sony, according to two sources. Instead, AMD landed the contract through a competitive bidding process that eliminated others such as Broadcom (AVGO), until only Intel and AMD remained. An Intel spokesperson said: “We strongly disagree with this characterization but are not going to comment about any current or potential customer conversations. We have a very healthy customer pipeline across both our product and foundry business, and we are squarely focused on innovating to meet their needs.”