It appears that Intel has got a new contestant. Applied Micro Circuits, a new upcoming chipmaker, is aiming at the energy saving server market, and, according to Raymond James analyst Hans Mosesmann, it will be a major threat to Intel's business. The company currently has 649 employees and annual sales amount to $195 million, and while this is not much compared to Intel, AMC is optimistic. With a low power, ARM based chip called the X-Gene as it main product, AMC seems to have convinced many analysts that it will be able to compete with Intel. In a recent report from Bernstein Research, analysts have concluded that "[they] see some risks for Intel", and Sergis Mushell from research firm Gartner agrees. A chip expert from the Linley Group, Linley Gwennap, believes that Intel will use whatever they an to ensure that AMC does not gain a foothold.
The X-Gene is a ARM based, 64 bit server processor that has been improved upon to fit AMC's target market. The processor will be running at 3.0 GHz, while using very small amounts of power.The processor is scaleable up to 128 cores with very low latency and quad issue out of order . The chip will also have integrated PCI-Express, storage and network interface controllers.