AMD cuts Ryzen 7000 series CPU production due to PC market decline

AMD previously released preliminary financial results for the third quarter of 2022, with expected revenue of approximately $5.6 billion, a year-on-year increase of 29%. Compared with the $6.7 billion reported in the second quarter of 2022, and the expectation of a 55% year-on-year increase, revenue was significantly reduced by $1.1 billion. This reflects that the softening of the PC market may be much more severe than previously estimated, coupled with the need for destocking operations in the supply chain, resulting in fewer processor shipments.
Ryzen 9 7900X cover

Image: der8auer

According to Wccftech, AMD plans to reduce the production of Ryzen 7000 series processors based on the Zen 4 architecture due to the decline in the PC market and the overall poor performance of the AM5 platform. Although AMD is trying to attract users with a series of powerful features, supporting PCIe 5.0 and DDR5 memory on the AM5 platform, the price of related motherboards has also risen, even mainstream-level B650 motherboards have fallen short of the $125 price AMD had promised.

Quite a few players want better game performance and can upgrade to the Ryzen 7 5800X3D processor on the existing AM4 platform. The 8 cores based on the Zen 3 architecture are enough for most scenarios. It was previously reported that the Ryzen 7000X3D series processors will be unveiled at the CES 2023 exhibition early next year. In addition, the high-end 12-core and 16-core products on the AM4 platform are currently far more cost-effective than the AM5 platform.

Among the released Ryzen 7000 series processors, the AMD Ryzen 9 7900X is the best-selling product, and its pricing seems to be more attractive than the lower-positioned Ryzen 7 7700X and Ryzen 5 7600X. Nearly all major retailers are rumored to have large stocks of Ryzen 7000-series processors and AM5 motherboards, and unless other factors cause a surge in demand, there’s no point in producing them at full capacity.