AMD Reportedly Cuts Down 5nm “EPYC Genoa” Wafers To 30,000 Units Due To Low Server Demand
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The semiconductor market has recently been rocked by news that Advanced Micro Devices (AMD) has reportedly cut down the number of 5nm “EPYC Genoa” wafers from 90,000 to 30,000 due to lower server demand. EPYC Genoa is the upcoming 7nm chip which is meant to offer similar performance and power efficiency as its 7nm sibling, the 14nm EPYC Milan.
The decision comes at a time when demand for servers is on a downward trend caused by the global pandemic, with companies shifting to the cloud and cutting down their IT budgets. This has further compounded by the fact that memory prices have dropped significantly due to an oversupply in the market.
AMD has not commented on the story, however the news will have a significant impact on its plans to launch the new “EPYC Genoa” server processor. The 7nm chip was expected to bring performance improvements compared to its 14nm predecessors, in addition to improved power efficiency and lowered cost.
The reduction in the number of wafers underscores the impact of the pandemic on the corporate IT sector and the semiconductor market in general. With companies cutting back spending and cloud adoption becoming more widespread, demand for new server builds has waned. This has further been compounded by the oversupply and price declines seen in memory chips.
It is yet to be seen if AMD will be able to maintain its position as one of the leading semiconductor companies in 2021. The company is still facing stiff competition from Intel, with the latter recently introducing its own 7nm Xeon processor. This could force AMD to further reduce pricing and revise its plans for the EPYC Genoa server processor.
The semiconductor industry is currently in a state of flux, and AMD’s decision to reduce wafer orders is a reflection of the current market conditions. The company will have to remain vigilant in order to remain competitive in 2021, and any further decreases in demand for servers could affect the launch of its new processor.
