Dual-core processors to take over the market

Posted on Thursday, February 09 2006 @ 10:10 CET by Thomas De Maesschalck
The dual core processor with its high capability is most likely to take over the existing single core microprocessor market. The market for dual core is expected to penetrate into the existing markets as well as developing markets. Going forward from 2006, dual core processors will be taking over from the existing microprocessor market.

The market may face some obstacles in the initial stages such as the adaptability, understanding and adoption by OEMs and customer demand as the transition is never easy in a mass market. However, these obstacles expect to be overcome by time and hence a large addressable market is foreseen.

New analysis from Frost & Sullivan (http://www.semiconductors.frost.com ), Dual Core Processor Market reveals that the single core processor market will be replaced by dual core processors at an average of 15 percent to 25 percent every year in all the topologies such as desktops, notebooks and servers.

Most of the current attentions for dual core processors are coming from the service providers, as dual core will assist in keeping up the service level agreements. Dual core processors are also expected to create a huge market for games, complex programming and mobile multi-media.

With AMD focusing more on the server market in the initial stages, the strategy seems to be just right. The servers and the applications it serves best utilize the dual core capabilities. Applications today are mostly multi- threaded especially in the servers and as we discussed earlier, dual core efficiency is exploited best by multi-threaded applications than the single threaded ones. Intel's launch of dual core in the server market is delayed, however with its brand image and technological advancements, its products in dual core segment can penetrate into the market with ease.

"Frost & Sullivan estimates that Intel with its given capacity will ship between 60-65 million units of dual core processors in the year 2006, which constitutes a significant portion of the overall single core processor shipping," says Frost & Sullivan Research Analyst Aravind T. Seshagiri. "However, there are restraints such as the existing contracts with the vendors that will limit Intel and AMD to produce single core processors, which will eventually reduce the production of dual core processors."

The dual core processor market forecast on the whole depends on the shipment of desktops, notebooks and servers in the next few years and the percentages of penetration.

Dual core is a technology that moves along with the shipment of PCs, notebooks and servers. The movement and growth of these topologies will determine the movement of dual core processors in the market. Dual core may fuel the growth of PCs, notebooks and especially servers in the coming years.

Any increase in performance will see a change in certain parameters of the system. When it comes to doubling the performance of a system, there have to be some changes that need to be accommodated. Replacing a single core with a dual core processor can enhance the performance of a server system, but other devices such as memory, are all designed for single core processor. This could be a hindrance to the dual core's design and speed in the data exchange.

Vendors also suggested the best way to get into the mass market is to tie up with manufacturers to avoid any manufacturing overheads that will eventually be passed on to the customer. This may help in achieving the set targets by the dual core processor manufacturers such as AMD and Intel. Frost & Sullivan also believes that with the given drivers, restraints and challenges in the industry, companies such as Intel and AMD can certainly use their strengths to penetrate into the market more than what is being projected.

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