AMD increases the EPYC processors pricing by 10% to 30%, Intel’s Sapphire Rapids delayed

The server market tends to be one of Intel and AMD’s most profitable businesses, and orders in this area tend to have a larger impact on revenue and profits. According to TomsHardware reports, recent reports from investment institutions show that the competition in the server market is changing quietly this year, and both Intel and AMD are changing their strategies in the server market.

It is understood that AMD plans to increase the pricing of EPYC processors by 10% to 30%. This is the reality of chip shortages leading to a decline in future shipments. AMD has not commented on the matter. The rate of increase in pricing is related to specific customers, and the rate of increase for large cloud or data center customers will be smaller. As for the supply situation, it is unclear for the time being.

AMD’s Zen 3 architecture EPYC processors codenamed Milan and Milan-X have very good overall performance, and their performance per watt also occupies a competitive advantage, helping to reduce operating costs. In a time of wafer and packaging capacity shortages, the price hikes seem unsurprising and justified. After all, in the current semiconductor supply chain, the manufacturing cost of almost every link is rising, and it is sometimes helpless to appropriately pass the cost to customers.

The report notes that Intel has ramped up Ice Lake production, with supply expected to grow by 50% year-over-year in 2022. Unlike AMD, in order to retain market share, Intel will not increase the price of Ice Lake in order to reduce the competitiveness of AMD products. However, Intel’s high hopes for Sapphire Rapids are likely to be delayed, and full mass production will be delayed until the third quarter of 2022. Investors don’t think Sapphire Rapids can turn things around, predicting that its pricing will increase and Intel’s market share will eventually decline.