Due to heightened demand for server chips in data centers, AMD - the world’s second-largest computer central processing unit (CPA) and graphics processing company - has beat market estimates both in terms of revenue and profit for 2021Q4. As indicated by its CEO, Su Si-feng, the server business will be "very fierce and robust" this year compared to other areas.

  In recent years, huge Cloud services and data centers are required to provide high-performance computing power support. This is due to the development of emerging technologies like AI, autopilot, and Metaverse as well as the impact of the post-epidemic context that has accelerated the digital transformation of enterprises. These factors have stimulated the growth of the server market. Despite Microsoft and Google continuing to invest in new data centers, Metaverse (formerly Facebook) - yet to be unveiled in full development - will increase its capital expenditure from US$29 billion to US$34 billion US dollars in 2022. This is an annual increase of 66% and roughly equivalent to the annual capital expenditures of Amazon, Microsoft, and Google. Thus, it should be most conducive to driving growth for server shipments this year.

  Based on IDC statistics, the global server market has been on a recovery trend in 2021. Particularly strong demands can be observed from large Cloud data center companies from the United States and China, especially Amazon and Google. However, shipment progress remains highly affected by the global shortage of IC chips (such as power management ICs) and components. In 2021, the output value of the global server market will reach approximately US$100.6 billion, an increase of 4.8%.

  Given 2022’s prospects, the electronics industry has as a whole believed that the supply of IC chips will remain in short supply. However, the margin of gross profits for server products is relatively favorable as they do enjoy a higher priority in supply among many downstream products. On the other hand, as fabs continue to increase production, it is expected that the relevant chip gap will be eased, quarter by quarter. In addition, the global server market is expected to show double-digit growth driven by favorable factors like strong demands from Cloud data centers and the launch of a new generation of CPUs by Intel and AMD in the second half of the year.