Intel Corporation (NASDAQ:INTC) is ahead of ARM Holdings Plc when it comes to innovation, believes Amazon.com, Inc. (NASDAQ:AMZN). The operator of some of the world’s largest data centers says that chip maker ARM is failing to keep up with Intel’s pace of innovation, according to a report from Bloomberg.

Intel Corporation's Pace of Innovation Ahead Of ARM: Amazon

ARM slow to innovate

Amazon will continue using Intel chips for its servers, according to James Hamilton, a vice president for Amazon web services, which offers computing power and storage over the Internet to Enterprise clients.

Hamilton, after a presentation at Amazon’s annual Web services conference in Las Vegas, said that ARM is not moving fast enough. There was no comment from ARM spokesman Edmund Gemmell over Amazon’s statement. Intel dominate the global processor market, and it is vital for rivals to lure clients such as AWS for server chips.

AWS is the cloud computing arm of Amazon, and has considered ARM-based chips. The company is also hiring  more semiconductor engineers to enhance its operations, according to Hamilton. He also noted that data-operators prefer to build their own servers rather than settling for lower quality, cheaper servers. This is because the price of powering and cooling the warehouse surpasses the cost of equipment.

Hamilton said that it is not worth replacing the current Intel-based machines, adding “Any time I work out the cost models, it’s not quite there.” He added that Intel is simpler to support given some of the custom work that Amazon requires, and presently Intel is more sensitive towards client needs than ARM.

Intel CEO plans to beat ARM in China

In some more bad news for ARM, a couple of days back, Intel Corporation (NASDAQ:INTC) CEO Brain Krzanich said that he is expecting new semiconductor partners in China to shift from ARM technology to Intel’s architecture in the coming quarters. Previously, the chipmaker entered into a deal with Rockchip and Spreadtrum Communications to offer its technology for making chips for smartphones and tablets.

The United States chipmaker has made a late entry into the smartphone and tablet category. Intel processors are widely used for personal computers, but it has relatively less experience in designing low-power “system on chips” or SoCs key components in mobile devices, which includes processors, Wi-Fi and memory. Intel is focusing on China as the demand for smartphones in the United States is nearing saturation.