AMD’s EESC Segment Looks Beyond Game Console For Growth Driver

    Author Jen JiangPosted on Categories Semiconductors, TechTags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
    EESC Segment

    Advanced Micro Devices’ (NASDAQ:AMD) year-over-year revenue saw a healthy increase, driven by a surge in ASP (average selling price) of Computing and Graphics products and patent licensing revenues.

    But, growth in the EESC (Enterprise, Embedded, and Semi-Custom) segment was stagnant. This segment offers semi-custom chips used in game consoles, server chips, and embedded chips.

    Between 2012 and 2016, AMD’s revenues fell more than 20% as it lowest significant market share within the PC sector, as well as in the server CPU and GPU space.

    In fiscal 3Q17, EESC revenues were flat on a YoY basis. Revenues rose 46%, to $825 million- driven by seasonal demand for semi-custom chips, growth in server chips, and the addition of new patent licensing deal.

    EESC’s operating incoming fell 38% YoY to $84 million due to higher costs of developing server chips.

    Further, AMD is also monetizing its intellectual property to boost earnings. The company is in talks with several companies for a licensing deal, and it recently completed one deal.

    Featured Image: depositphotos/alexeynovikov

    Author Jen Jiang
    About the author: Jennifer is a University of Western Ontario graduate with a degree in International Business. She strives to excel as a content creator in the digital sphere, working with clients in the Finance and Tech industry to leverage clickable taglines, images, and articles in driving traffic. When not writing, Jennifer enjoys photography, copywriting, and video production.