- AMD needed a solution to product failures
- NexGen produced some powerful equipment
- The company used a unique x86 architecture
NexGen was one of the leading semiconductor companies in the U.S. during the booming 1980s.
Based in Milpitas, California, it gained recognition for its distinctive implementation of the x86 architecture in its processors.
Unlike traditional chips, NexGen CPUs executed code on an internal RISC architecture rather than translating it for the CISC-based x86 architecture.
This innovative design set the company apart and attracted attention from major industry players. Its flagship processor design also contributed to a resurgence at one of the industry's largest manufacturers.
Here’s everything you need to know about NexGen.
NexGen’s Strategy to Compete with Intel
Founded in 1986 by Thampy Thomas, a co-founder of Elxski, NexGen operated as a fabless design house, outsourcing production to IBM’s Microelectronics division in Vermont.
In its early days, NexGen secured significant backing from companies like Compaq, ASCII, and venture capital firm Kleiner Perkins.
With Intel in its sights, NexGen's first design targeted the Intel 80286 (i386) processor line, but production challenges hindered its launch.
With its second product line, the Nx587, NexGen aimed to directly compete with Intel's Pentium series. However, it faced a significant hurdle.
Other competing chips, like those from AMD and Cyrix, were pin-compatible with both the Pentium series and other Intel chips.
In contrast, the Nx586 required a custom motherboard and chipset. Nevertheless, its performance was noteworthy, with the Nx586-P80 CPU clocking in at 75MHz, rivaling the Pentium series.
While it wasn't a commercial success, it did find some enterprise adoption, particularly from Compaq, and caught AMD's attention.
AMD's Strategic Acquisition
After going public in 1994, NexGen attracted AMD's interest, which was struggling with the performance of its K5 chip range.
In 1995, AMD acquired NexGen for $850 million, aiming to integrate its designs into its upcoming product lines.
The K6 range heavily drew from the Nx686 design and, upon its launch in 1997, posed a serious challenge to Intel's Pentium dominance. This microprocessor was specifically designed to work with existing desktop systems that used Pentium CPUs.
Moreover, it was a powerful option for its time, with initial versions reaching speeds of up to 200MHz, followed by a 233MHz version later that year.