Intel’s CPUs consume much more power than the latest AMD chips.
Intel (INTC 3.12%) stumbled over manufacturing issues in the past and is only now starting to turn things around. The company’s entire desktop CPU line is still manufactured on the Intel 7 manufacturing process, which is based on the same 10nm node that was originally intended for mass production in 2016. In the meantime, its competitor AMD (AMD 4.52%) has taken advantage of TSMC‘s manufacturing progress with each new version.
A massive efficiency advantage for AMD
Despite Intel’s current manufacturing disadvantage, the company has managed to stay competitive with AMD in terms of performance. Intel’s Raptor Lake Refresh desktop CPUs, due to launch in late 2023, continue to hold up well even as AMD launches its Ryzen 9000 series. Intel’s high-end 14900K, for example, beats AMD’s brand new and more expensive Ryzen 9 9950X in single-threaded and gaming workloads.
Intel has had to sacrifice power efficiency to keep up, and the gap between Intel and AMD is now miles wide. In Tom’s Hardware’s test of AMD’s Ryzen 9950X, Intel’s 14900K consumed almost 30% more power in some cases. In the mid-range, the difference is even greater, where Intel’s 14600K sometimes consumed twice as much power as AMD’s Ryzen 9600X.
Power consumption and efficiency are not quite as important for desktop PCs as they are for laptops, where battery life is a major selling point. However, those building gaming PCs or PCs for demanding productivity tasks should opt for more efficient chips. A desktop PC with a power-hungry CPU paired with a graphics card can easily become a heater if it is not adequately cooled.
Arrow Lake could be the solution
Intel plans to skip several generations of manufacturing technology for the successor to Raptor Lake Refresh. The company’s upcoming desktop CPU family is codenamed Arrow Lake and is expected to launch before the end of the year. Arrow Lake is expected to be manufactured on the Intel 20A process, which should be a huge step up from Intel 7. Intel 20A is a “2nm-class” process node, while Intel 7 is a “7nm-class” process node.
Intel hasn’t revealed much about Arrow Lake yet, but rumors and leaks suggest a dramatic improvement in power efficiency. A report from China says Arrow Lake chips consume 100W less power than Raptor Lake in some cases. For comparison, Intel’s 14900K can consume around 250W under heavy load. If these reports are true, Intel could completely close the efficiency gap with AMD.
Questions remain
Although Arrow Lake has the potential to significantly improve Intel’s competitiveness in the desktop CPU market, some questions remain. The company is struggling to produce enough Meteor Lake laptop chips based on the Intel 4 process, and it’s unclear how much volume the company can muster to launch Arrow Lake.
For Lunar Lake, Intel’s next-generation laptop CPU, the company has decided to outsource most of the production to TSMC, possibly because it doesn’t have enough Intel 20A capacity for both product families. Time will tell if Intel can produce enough chips to turn its supposed efficiency gains into market share gains this year.
AMD has a clear lead over Intel in the PC CPU market when it comes to power efficiency. With Arrow Lake, Intel has a chance to close that gap as it plans its comeback.
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy.
