Is chip maker AMD in trouble?

Advanced Micro Devices (AMD) is making headlines these days because it is cutting down employees, changing the management and making other newsworthy changes. AMD is running as a distant second to the industry leader Intel for a long time for making PC chips. In 2008, it split into two companies, AMD with chip sales and manufacturing going into a new company called GlobalFoundries. What is going on with AMD?

AMD is known for its chips for PCs and notebooks. It manufactures cheaper as well as more efficient chips compared to its competition and accounts for 20 percent of the market share. AMD provide chips to Microsoft and Sony for their video game consoles. Recently, it is losing its market share to Intel for server chips. Industry leader Qualcomm for tablet and mobile units delivers another blow to AMD in that market. Faced with harsh competition, now AMD is trying to get away from making PC and server chips. Pc industry is continuing to face problems mainly due to competition from mobile devices such as tablets and smartphones. On the other hand, Intel who for a long time only manufactured its own chips, now supplying gaming chips for others. Samsung and Taiwan Semiconductor Manufacturing are putting more money into their plants.