• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
TechTesla

AMD adds Tesla as a customer after winning over the PC market

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
May 31, 2021, 11:00 PM ET

Advanced Micro Devices has gained major momentum in recent years with new big-selling chips for PCs, laptops, and servers. Now CEO Lisa Su has won over a high-profile customer outside of the computer industry: Tesla.

AMD processors and graphics chips will be used in the infotainment systems of newly updated Tesla Model S and Model X electric cars, which are expected to go on sale in a few weeks. With AMD’s more powerful chips, Tesla owners will be able to play cutting-edge video games in their cars—when they’re not driving, of course–and see maps and other items in more detail.

“The work (Tesla) is doing is truly pushing the leading edge of what you can put into a car,” Su told Fortune in an exclusive interview before announcing the Tesla deal on Monday at the Computex computer show in Taiwan. She described the effort to make in-car dash systems as powerful as high-end PCs “part of the broader trend that computing is everywhere.”

“The fact is that the technology we developed for PCs is now coming over into the automotive world,” Su said.

The Tesla contract adds to AMD’s momentum following three years of gains in the computing market. As a supplier to one of the buzziest U.S. companies, AMD can claim significant bragging rights and yet another victory over its rivals.

The win displaces Intel, which had supplied chips for the infotainment system in prior versions of the Model S and X. The other Tesla vehicles—Model 3 and Y—will continue to be equipped by Intel.

AMD didn’t disclose any financial details about its Tesla deal. But to give a sense of its size, Tesla produced nearly 60,000 Model S and X cars last year, or 11% of its 2020 total production.

The deal doesn’t include chips in Tesla’s self-driving car system, which are designed by Tesla in-house. Tesla didn’t respond to an email seeking comment.

Even with the Tesla deal, AMD remains a minor player in the automotive industry, which is part of the reason why it plans to buy chip maker Xilinx for $35 billion. That deal, announced in October, is expected to close by year-end.

Since Su took over at AMD in 2014, she has overseen a renaissance at what is the second-biggest chipmaker for personal computers and servers behind Intel. In the first quarter, AMD’s sales jumped 93% to $3.4 billion, almost more than AMD’s entire annual revenue in 2015.

And while Intel has stumbled in making new chips, AMD has had little trouble in working with its manufacturing partner, Taiwan Semiconductor. AMD’s stock has gained 52% over the past 12 months while Intel’s lost 10%.

On Monday at Computex, AMD also announced a host of other customer wins and new chips, including a deal to supply graphics technology for Samsung mobile phones and new processing chips for laptops and PCs that include the latest graphics technology built in. Integrating its newest and best-performing graphics technology with the processor chips should improve laptop performance without hogging as much battery power as separate graphics chips require.

In another demonstration, Su showed AMD’s latest Epyc processor for servers outperforming Intel’s latest server chip by 50% on an e-commerce application.

But the most important reveal may have been Su’s demonstration of a new technique AMD developed in concert with Taiwan Semiconductor to improve chip performance in the future.

For years, chip makers have jammed more transistors onto the same-sized piece of silicon to cut costs and boost performance. That progress has slowed, so the industry is looking to the third dimension to improve performance.

At Computex, Su showed off an existing AMD desktop processor chip that had added memory stacked on top of it using the new technique. By putting the processor and the memory in closer contact, the performance of the most-demanding video games improved 15%.

“The next frontier is really to go into the third dimension, the idea of stacking chips on top of each other,” Su said. The stacked chips must be carefully designed so that they don’t overheat or use too much power. Comparing the process to snapping Lego bricks together but on a microscopic scale, she added: “It looks nice, but it’s actually very hard to do.”

AMD will only be using the stacking technique on high-end chips, aimed at video gamers and businesses that are willing to pay extra. “This is not something that will show up for the mainstream consumer products,” Su said. “It will be the top-end performance that you can get from some of our processors.”

Intel has said that its own version of 3-D stacking technology, which will premiere on its Ponte Vecchio chip for graphics and A.I. processing, is expected to debut in the Argonne National Laboratory’s Aurora supercomputer next year. Next, Intel will use the technology in its Meteor Lake line of desktop processors due in 2023.

The semiconductor industry is still struggling to meet the increasing global demand for chips, which has caused shortages that have slowed production of everything from cars to phones and video game consoles. Su said AMD and other chipmakers are still working to increase production to fix the problem.

“The overwhelming thing to remind people of is the origin of this particular shortage is just incredible demand—no one could have predicted this type of demand,” she said. “There’s an overwhelming desire to satisfy the demand, and every part of the semiconductor ecosystem is working on ramping that demand as fast as possible.”

Our mission to make business better is fueled by readers like you. To enjoy unlimited access to our journalism, subscribe today.
About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Bridgit Mendler speaks on stage at Fortune Brainstorm Tech 2026 in Aspen, Colorado.
Startups & VentureBrainstorm Tech
The space economy’s next frontier is in ground infrastructure, Northwood Space CEO says
By Sebastian HerreraJune 10, 2026
5 hours ago
Digital sovereignty isn’t the same thing as digital isolation. Asia’s governments should be careful
Commentarydata sovereignty
Digital sovereignty isn’t the same thing as digital isolation. Asia’s governments should be careful
By Leonard LimJune 10, 2026
9 hours ago
Microsoft co-founder Bill Gates (C) arrives for a closed-door interview with the House Oversight Committee on Capitol Hill in Washington, DC, on June 10, 2026.
LawBill Gates
Gates testifies on Epstein: previous Fortune investigation reveals payments to his ex-girlfriend, $1M Microsoft deal
By Eva Roytburg, Joey Cappelletti, Hannah Schoenbaum and The Associated PressJune 10, 2026
10 hours ago
How the World Cup is a high-stakes stage for Big Tech’s AI push
NewslettersCIO Intelligence
How the World Cup is a high-stakes stage for Big Tech’s AI push
By John KellJune 10, 2026
11 hours ago
Anthropic accused of ‘secret sabotage’ as Claude Fable 5 silently limits capabilities for AI researchers and developers
AIAnthropic
Anthropic accused of ‘secret sabotage’ as Claude Fable 5 silently limits capabilities for AI researchers and developers
By Sharon GoldmanJune 10, 2026
12 hours ago
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI build-out
Future of WorkMeta
A 5-week course and a guaranteed job: Meta commits $115 million to solve the skilled-trades shortage stalling its AI build-out
By Jacqueline MunisJune 10, 2026
13 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
12 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
3 days ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
1 day ago
A ‘MAGA Warrior’ Texas ag chief is publicly blasting the USDA over a flesh-eating pest threatening America's beef supply
North America
A ‘MAGA Warrior’ Texas ag chief is publicly blasting the USDA over a flesh-eating pest threatening America's beef supply
By Marco Quiroz-GutierrezJune 10, 2026
21 hours ago
Current price of oil as of June 10, 2026
Personal Finance
Current price of oil as of June 10, 2026
By Joseph HostetlerJune 10, 2026
17 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.