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Exclusive: How Intel lost the Sony PlayStation business (www.reuters.com)

submitted 2 days ago by [email protected] to c/[email protected]

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SAN FRANCISCO, Sept 16 (Reuters) - Intel (INTC.O) lost out on a contract to design and fabricate Sony’s PlayStation 6 chip in 2022, which dealt a significant blow to its effort to build its fledgling contract manufacturing business, according to three sources with knowledge of the events.

The effort by Intel to win out over Advanced Micro Devices (AMD.O)in a competitive bidding process to supply the design for the forthcoming PlayStation 6 chip and Taiwan Semiconductor Manufacturing Co (2330.TW) as the contract manufacturer would have amounted to billions of dollars of revenue and fabricating thousands of silicon wafers a month, two sources said.

Intel and AMD were the final two contenders in the bidding process for the contract.

Winning the Sony (6758.T) PlayStation 6 chip design business would have been a victory for Intel's design segment and would have doubled as a win for the company's contract manufacturing effort, or foundry business, which was the centerpiece of Intel CEO Pat Gelsinger’s turnaround plan.