AMD has reportedly cut down its 5nm wafer supply at TSMC with industry sources citing a lack of demand for EPYC Genoa CPUs within the server market.
AMD Might Be Cutting Back Its 5nm "EPYC Genoa" Wafer Supply Due To Poor Server Market Conditions
The report comes from Chinese industry analyst, 手机晶片达人, who has reported on his Weibo account that AMD has cut down its wafer supply of 5nm Genoa CPUs to just 30,000 units for the second quarter of 2023. The reason isn't because of a poor reception of Genoa CPUs but instead due to poor conditions and less demand within the entire server segment. In fact, AMD's Genoa CPUs offer a massive incentive for players within the server segment to upgrade to loads of performance, cores, threads, cache, and a platform that enables high-end memory and storage configurations.
AMD's EPYC Genoa CPUs house up to 96 cores and 192 threads. These cores are packaged in 12 CCDs based on the 5nm Zen 4 core architecture. Now a single 5nm wafer can produce several of these chips which measure around 72mm2 but since these are multi-chiplet designs, there might be a shortage of high-core count or high CCD chips in the coming quarter.
Meanwhile, DigiTimes Research has stated that AMD will grab hold of 20% server market share in 2023. Analysts expect that EPYC CPUs including Genoa and Bergamo are going to claw their way in to Intel's market share which will drop to around 70.9% from 77.0% during 2022.
AMD and Arm have been gaining up on Intel in the server CPU market in the past few years, and the margins of the share that AMD had won over were especially large in 2022 as datacenter operators and server brands began finding that solutions from the number-2 maker growing superior to those of the long-time leader, according to Frank Kung, DIGITIMES Research analyst focusing primarily on the server industry, who anticipates that AMD's share will well stand above 20% in 2023, while Arm will get 8%.
AMD CPUs' high number of cores also makes them perfect for the server environment as the higher the number of cores a CPU has, the more servicing capability it can offer. AMD's 96-core Genoa-architected EPYC processor was launched in the fourth quarter of 2022 with a 128-core CPU set to debut in the first half of 2023, while Intel's best offering in terms of the core number still stays at 60 at the moment.
Other analysts believe that AMD has the potential to grab up to 30% market share by the end of 2023 with its EPYC Genoa, EPYC Bergamo, and EPYC Siena lineups. Intel on the other hand will be a major driver for server DRAM during 2023 as tech giants plan to utilize its Xeon Sapphire Rapids family to power their cloud and data center requirements.
Turning to servers, their DRAM content growth has been spurred by newly emerged applications related to artificial intelligence (AI) and high-performance computing (HPC). Going forward, servers will surpass smartphones with respect to shipments of whole devices and memory content per box. Hence, server DRAM will represent the largest portion of the overall bit output from the DRAM industry in the next several years. TrendForce also points out that server DRAM products have a certain degree of price elasticity of demand, and their contract prices have undergone significant reductions since 3Q22. On account of these aforementioned factors, TrendForce projects that the average DRAM content of servers will increase by 12.1% YoY for 2023.
It is also worth noting that services that are powered by AI-related technologies will proliferate over the next few years. And because of the rising demand for high-speed data storage and HPC, enterprise SSDs are expected to surpass other categories of NAND Flash products in terms of order volume. TrendForce currently forecasts that enterprise SSDs will become the largest application segment of the NAND Flash market in terms of demand bits by 2025.
A recent report from Trendforce showed that server DRAM is expected to overtake mobile DRAM supply in 2023This is just the start of 2023 so a lot can happen down the road.
The post AMD Reportedly Cuts Down 5nm “EPYC Genoa” Wafers To 30,000 Units Due To Low Server Demand by Hassan Mujtaba appeared first on Wccftech.
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