Intel lost a $30B PlayStation 6 chip contract to AMD in 2022 due to profit margin disputes.

Intel lost a critical contract to design and manufacture the chip for Sony's PlayStation 6 to AMD in 2022, a deal potentially worth $30 billion. This setback hampers Intel's efforts to grow its contract manufacturing business, a key element of CEO Pat Gelsinger's turnaround strategy. The loss stemmed from disputes over profit margins, with AMD leveraging its existing relationship with Sony to secure the contract amidst intense competition.

September 16, 2024
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