Intel Misses Out on Sony PlayStation 6 Chip Contract to AMD

In 2022, Intel failed to secure a lucrative contract to design Sony’s PlayStation 6 chip, losing out to AMD. This setback hindered Intel's burgeoning contract manufacturing business. Despite prolonged negotiations and high-level discussions, a disagreement over profits led to AMD winning the bid, costing Intel billions in potential revenue.

In a major setback, Intel lost the contract to design and fabricate Sony's forthcoming PlayStation 6 chip to AMD in 2022, sources confirmed. The denied deal, valued in billions, was pivotal to Intel's strategy for expanding its contract manufacturing business.

Intel's endeavor was marred by a dispute over profit margins, impeding finalization of the deal with Sony. Despite intensive discussions that spanned months and included executives from both companies, AMD emerged victorious in the competitive bidding process.

This contract loss represents a significant financial and operational blow to Intel, which has been striving to attract marquee clients for its advanced 18A manufacturing process. The PlayStation 6 chip deal could have secured Intel's foundry division's performance for over five years, adding approximately $30 billion in revenue. Intel continues to grapple with finding substantial clients to propel its manufacturing business forward.

(With inputs from agencies.)