TDP stands for Thermal Design Power, which is the maximum amount of heat generated by a computer chip, such as a CPU or GPU, that its cooling system is designed to dissipate. It is usually measured in watts and is used as a guideline for selecting a suitable cooling solution for the CPU and ensuring the system can handle the heat generated by the CPU under heavy loads. TDP is not a measure of the peak power consumption of the processor, but rather an upper bound on heat dissipation by the package when operating near its base frequency.
TDP is often used as a basic indicator of power consumption, and more watts generally mean better performance, but also higher temperatures and more power consumption. PC OEMs can sometimes lower the TDP on a chip to increase battery life on a laptop or raise it up to boost speed.
It is important to note that TDP is not a precise measurement and can vary depending on the usage scenario, available cooling capacities, and desired power consumption. Additionally, TDPs are often specified for families of processors, with the low-end models usually using significantly less power than those at the high end of the family.