datacenter server
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Taiwanese ODMs including Foxconn Technology Group, Quanta Computer lnc., Wiwynn Corp., ASRock Technology Co. and Gigabyte Technology are benefitting from increasing demands for data center servers coming from growing needs in 5G, and data transmissions. The latter two have been actively deploying in the server market, which is mostly based on AMD’s architecture.

While Intel saw better performance in the second quarter, its server chip segment dropped by 9% as AMD plays a strong rival in the market. With Intel delaying the launch of next-gen chips, AMD may expand market share and further benefit Taiwanese ODMs including ASRock and Gigabyte.

Although Intel currently holds about 90% of the server chip market share, recent new products are being delayed by the 10nm node process, pushing Ice Lake to be launched only by the second quarter of this year and the latest server CPU, nicknamed Sapphire Rapids to delay volume shipments till the first half of 2022. This allows AMD, which adopts TSMC’s process nodes, to get a foothold for launching new products.

AMD’s server chip market share is drawing near 10%, and Arm takes the market share at a single-digit percentage. 

Taiwanese ODMs were faced with a delay in Intel’s new product launch and ongoing substrate shortages, slowing down growth momentum. While shortages will continue into the second half of 2021, industry insiders believe conditions will slightly relieve for the second half of the year. And in the long run, the demands will continue to grow. ODMs are subsequently testing products based on AMD’s architecture.

 

Source: cnYes