Intel wants to catch up in the PC market with Lunar Lake

Qualcomm and AMD rival
Intel wants to catch up in the PC market with Lunar Lake

The US manufacturer Intel is lagging behind when it comes to AI and has also lost considerable ground in the traditional PC business. In both cases, the company wants to catch up significantly with new chip generations. Dozens of companies have already placed orders.

Intel wants to regain lost ground in the PC market with a new generation of chips. The processor system, called Core Ultra 200V, is more powerful and efficient than chips from rivals Qualcomm and AMD, the company emphasized on the sidelines of the IFA technology trade fair at the radio tower in Berlin. Intel is also counting on the processors to be automatically compatible with all software for Windows PCs, as they are based on the well-established X86 architecture.

The first consumer PCs with the new chip, which was previously known primarily under the code name Lunar Lake, will go on sale on September 24th and can be pre-ordered now. Computers for companies are to follow early next year. Computer manufacturers have ordered processors for 80 different devices, Intel announced. “This shows that our customers are convinced of the chip's performance for use in all types of AI computers.” By the end of 2025, Intel wants to equip 100 million AI computers worldwide with processors.

The company has so far missed the AI ​​trend and does not offer any competitive products, especially when it comes to high-yield high-performance processors for servers. Nvidia dominates around 80 percent of the global market here. Intel wants to counter this with, among other things, a new generation of its AI processor “Gaudi”.

In addition, Intel has recently come under increasing pressure in the PC business. First, Apple switched from Intel processors for its Macs to chip systems it developed itself, based on the architecture of the British semiconductor designer Arm. The MacBooks then had significantly longer battery life and became faster. Apple is also now benefiting from the fact that all devices run on the same chip architecture.

Intel launches massive cost-cutting program

And when Microsoft launched a new computer category called Copilot+PC this summer that was specifically geared towards AI applications, the devices initially only used chips from Intel's competitor Qualcomm. Lunar Lake was not yet ready. Qualcomm also relies on Arm architectures and has long wanted to challenge Intel for the position in Windows computers.

The former semiconductor pioneer is now striking back. Intel not only pointed out that Lunar Lake chips offer better gaming performance than the competition from Qualcomm. In a dig, it also said that 23 PC games did not work at all with Qualcomm chips. Given the different architecture, Windows software for Arm computers must either be rewritten or run using transfer software.

At the same time, new AI functions from Copilot+PC will only be available to buyers of the new computers with Intel chips in November through updates to the Windows operating system. Lunar Lake could become a key product for Intel's future. In view of ongoing losses, the company recently had to launch a cost-cutting program that involved cutting around 15,000 jobs. According to a media report, even more drastic steps such as abandoning factory projects are being considered. Among other things, Intel wants to build a factory in Magdeburg costing around 30 billion euros.

It remains to be seen whether this will remain the case in view of the austerity measures. “We continue to invest in areas that are central to our business to ensure that we are well positioned for long-term growth.” Saxony-Anhalt's Ministry of Economic Affairs hopes that the project will be implemented. “As a state, we have done everything we can to support the settlement. Intel has confirmed to us that it wants to continue to hold on to this location.”