Intel Sapphire Rapids delay is good for AMD
Intel’s next-generation Xeon Scalable processor, Sapphire Rapids, was originally scheduled to ship in 2021, but after multiple delays, the schedule is well behind its rivals. Intel originally intended to use Sapphire Rapids to compete with AMD’s EPYC processors code-named Milan, but the actual delivery time is even later than the new generation of EPYC processors, code-named Genoa.
According to the latest TrendForce report, the current yield rate of Sapphire Rapids is only 50% to 60%. Economically, Intel is almost unprofitable, which has seriously affected Intel’s mass production plan and has been delayed until the first half of 2023. This mass production schedule not only affects the ODM material preparation cycle but also greatly reduces the proportion of OEM and CSP imported into Sapphire Rapids. AMD will be the biggest beneficiary, with a further increase in the market share of x86 server processors expected in 2023, from 15% in 2022 to 22%.
Because AMD’s EPYC processors can provide more cores and better overall performance, many data centers will tend to choose AMD’s solutions. As more enterprises become more ESG-conscious, driving demand for single-socket servers, AMD products with total cost of ownership (TCO) advantages are becoming more popular.
In the past two quarters, Intel’s share of x86 server processor shipments fell 6 percent from a year earlier. AMD’s share of x86 server processor shipments will grow rapidly in 2023 as governments and businesses increasingly factor ESG metrics into their procurement considerations, and is expected to reach 25% in the fourth quarter of 2023, an annual growth rate of 7%.
