According to foreign media tomshardware, an excerpt from a market report shows that AMD is raising the price of its EPYC data center processor by 10% to 30% for some customers, which is a new initiative in the face of chip shortages leading to lower shipments in the future.
The report also mentions that Intel's next-generation Sapphire Rapids chips could be delayed until the third quarter of 2022, meaning Intel could miss the revised timeline it announced last year.
Excerpted from a report by Jordan Klein, Managing Director of Mizuho Securities, which quotes Dolly Wu, Vice President and General Manager of Data Center/Cloud at Inspur Systems, the world's second-largest server vendor. The report said AMD increased pricing by 10 to 30 percent, but the impact varied from customer to customer, with fewer surcharges for large cloud customers. The report said that if there is no guidance on when more CPUs will arrive, AMD's customers will only accept higher prices.
The AMD EPYC 7003 series processors, code-named "Milan", have excellent performance and the highest per-watt performance in the data center. The large number of Milan cores can improve the efficiency of data center servers and reduce operating costs, so customers are willing to pay more.
The price of AMD chips outsourced, lithography (wafer) and packaging and testing has soared, and the impact on EPYC is far greater than that of AMD's other chips. EPYC uses multi-chip design, a single chipset with up to 9 grains, given that manufacturing costs at every stage of the supply chain are increasing, AMD price increases may be to pass on cost pressure to customers, rather than to increase gross profits.
Intel CEO Pat Gelsinger believes that the company's next-generation data center processor, Sapphire Rapids, will be able to pull back a city and compete directly with AMD's EPYC. But Inspur system Dolly Wu predicts that AMD's third-generation EPYC processor Milan and fourth-generation EPYCGenoa will continue to overwhelm Intel, and AMD can maintain "explosive growth" in the data center.
AMD surged 3.12% on the 14th to close at $136.88.
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