During the ISC High Performance 2023 international conference, Intel announced interesting roadmap updates to its high-performance computing (HPC) and artificial intelligence (AI). With the scrapping of Rialto Bridge and Lancaster Sound, Intel merged these accelerator lines into Falcon Shores processor for HPC and AI, initially claiming to be a CPU+GPU solution on a single package. However, during the ISC 2023 talk, the company forced a change of plans, and now, Falcon Shores is GPU only solution destined for a 2025 launch. Originally, Intel wanted to combine x86-64 cores with Xe GPU to form an "XPU" module that powers HPC and AI workloads. However, Intel did not see a point in forcing customers to choose between specific CPU-to-GPU core ratios that would need to be in an XPU accelerator. Instead, a regular GPU solution paired with a separate CPU is the choice of Intel for now. In the future, as workloads get more defined, XPU solutions are still a possibility, just delayed from what was originally intended.

Regarding Intel's Gaudi accelerators, the story is about to end. The company originally paid two billion US Dollars for Habana Labs and its Gaudi hardware. However, Intel now plans to stop the Gaudi development as a standalone accelerator and instead use the IP to integrate it into its Falcon Shores GPU. Using modular, tile-based architecture, the Falcon Shores GPU features standard ethernet switching, up to 288 GB of HBM3 running at 9.8 TB/s throughput, I/O optimized for scaling, and support for FP8 and FP16 floating point precision needed for AI and other workloads. As noted, the creation of XPU was premature, and now, the initial Falcon Shores GPU will become an accelerator for HPC, AI, and a mix of both, depending on a specific application. You can see the roadmap below for more information.

The fate of Intel's Meteor Lake-S desktop CPU lineup has been the topic of much debate since the end of last year - at the time, industry tipsters proposed that part of the product range had been disposed of entirely, but several leaks throughout the course of 2023 have indicated that MTL-S processors were on-track for a launch later in the year - albeit restricted to i3 and i5 offerings. An Intel employee has also confirmed that a new SKU naming system will be implemented as part of the upcoming Meteor Lake lineup - although he did not clarify whether this would encompass both mobile and desktop variants.

An alleged Intel client CPU roadmap has made its way onto the internet, and tipsters think that the information on hand shows that Team Blue has pulled the plug on its Meteor Lake-S (6 Performance and 8 Efficiency cores) desktop processors. The presentation slide was likely authored earlier this month - so these developments are relatively fresh, with provisions for Core S, H, PX, M, U & N series. The heavily redacted infographic maps out product release windows going as far forward as Q4 2026. OneRaichu posits that an Arrow Lake-S (6P + 8E) CPU lineup will replace MTL-S. It is possible that Intel's Raptor Lake-S refresh could serve as an interim release this year, since the Arrow Lake generation is expected to arrive in 2024.

NVIDIA today announced a supercomputer built on the NVIDIA Grace CPU Superchip, adding to a wave of new energy-efficient supercomputers based on the Arm Neoverse platform. The Isambard 3 supercomputer to be based at the Bristol & Bath Science Park, in the U.K., will feature 384 Arm-based NVIDIA Grace CPU Superchips to power medical and scientific research, and is expected to deliver 6x the performance and energy efficiency of Isambard 2, placing it among Europe's most energy-efficient systems.

It will achieve about 2.7 petaflops of FP64 peak performance and consume less than 270 kilowatts of power, ranking it among the world's three greenest non-accelerated supercomputers. The project is being led by the University of Bristol, as part of the research consortium the GW4 Alliance, together with the universities of Bath, Cardiff and Exeter.

Intel has published a highly involved and extensive whitepaper on the topic of streamlining its CPU architectures, most notably by focusing on a purely 64-bit specification, and consequently dropping legacy 32-bit operating modes (as well as 16-bit!). Team Blue's key proposal states: "This whitepaper details the architectural enhancements and modifications that Intel is currently investigating for a 64-bit mode-only architecture referred to as x86S (for simplification). Intel is publishing this paper to solicit feedback from the ecosystem while exploring the benefits of extending the ISA transition to a 64-bit mode-only solution."

The paper provides a bit of background context: "Since its introduction over 20 years ago, the Intel 64 architecture became the dominant operating mode. As an example of this evolution, Microsoft stopped shipping the 32-bit version of their Windows 11 operating system. Intel firmware no longer supports non UEFI64 operating systems natively. 64-bit operating systems are the de facto standard today. They retain the ability to run 32-bit applications but have stopped supporting 16-bit applications natively. With this evolution, Intel believes there are opportunities for simplification in our hardware and software ecosystem."

Russian business news outlet Kommersant has learned from industry figures that prices of natively-designed computer processors have been on the rise since the beginning of 2023. Domestic manufacturers of PC, server and storage systems are requiring greater supplies of CPUs designed by Baikal Electronics and MCST - the publication posits that growing demand and logistical issues have become the root cause of recent climbs in cost - individuals involved in the computer hardware supply chain have suggested that some processor models have doubled in price. Sergey Ovchinnikov, the chief executive of Norsi-Trans (a server and data storage firm) provided comment: "Production of Russian chips at foreign fabs has become more complex, leading to extended logistics chains and, consequently, an increase in the cost of the final component." International trade sanctions have not prevented the arrival of fresh silicon into the region - Ovchinnikov claims that an unnamed foundry is able to supply (likely via proxy) Russian developers with computer processors.

Kommersant's investigation found out that Baikal's BE-T1000 CPU is now sold for roughly $110 (8900 Rubles) at a popular computer hardware e-tailer (ChipDip) in the region. The very basic dual core MIPS32r5 (28 nm) processor was readily available for $50 (3990 rubles) back in 2018, so its price has risen by 220% in recent times. TSMC was contracted as the manufacturer of Baikal's BE-T1000 CPU, and the Taiwanese foundry started producing these SoCs in 2016. A Baikal Electronics representative has denied any involvement in driving up MSRP, and states that it is up to distributors and retail outfits to determine prices. The company suspects that very old stock is being sold at inflated rates - Kommersant was unable to contact anyone at ChipDip for a statement.

Ampere Computing today announced a new AmpereOne Family of processors with up to 192 single threaded Ampere cores - the highest core count in the industry. This is the first product from Ampere based on the company's new custom core, built from the ground up and leveraging the company's internal IP. CEO Renée James, who founded Ampere Computing to offer a modern alternative to the industry with processors designed specifically for both efficiency and performance in the Cloud, said there was a fundamental shift happening that required a new approach.

"Every few decades of compute there has emerged a driving application or use of performance that sets a new bar of what is required of performance," James said. "The current driving uses are AI and connected everything combined with our continued use and desire for streaming media. We cannot continue to use power as a proxy for performance in the data center. At Ampere, we design our products to maximize performance at a sustainable power, so we can continue to drive the future of the industry."

We would like to address the recent media reports regarding the SOC Voltage exceeding 1.3 V on GIGABYTE's AMD AM5 motherboards especially when EXPO is enabled in the latest beta BIOS.

GIGABYTE respects and appreciates media's support and favor to GIGABYTE motherboards for long time. In terms of the SOC Voltage measurement, the authentic measurement point and method is critical since the SOC Voltage will differ by that. The CPU internal SOC Voltage (SVI3 interface) is the most crucial indicator to motherboards, and, in general, the PWM Output Voltage will be higher than the CPU internal SOC Voltage (SVI3 interface) due to various physical factors.

With more countries creating initiatives to develop homegrown processors capable of powering powerful supercomputing facilities, India has just presented its development milestone with Aum HPC. Thanks to information from the report by The Next Platform, we learn that India has developed a processor for powering its exascale high-performance computing (HPC) system. Called Aum HPC, the CPU was developed by the National Supercomputing Mission of the Indian government, which funded the Indian Institute of Science, the Department of Science and Technology, the Ministry of Electronics and Information Technology, and C-DAC to design and manufacture the Aum HPC processors and create strong, strong technology independence.

The Aum HPC is based on Armv8.4 CPU ISA and represents a chiplet processor. Each compute chiplet features 48 Arm Zeus Cores based on Neoverse V1 IP, so with two chiplets, the processor has 96 cores in total. Each core gets 1 MB of level two cache and 1 MB of system cache, for 96 MB L2 cache and 96 MB system cache in total. For memory, the processor uses 16-channel 32-bit DDR5-5200 with a bandwidth of 332.8 GB/s. To expand on that, HBM memory is present, and there is 64 GB of HBM3 with four controllers capable of achieving a bandwidth of 2.87 TB/s. As far as connectivity, the Aum HPC processor has 64 PCIe Gen 5 Lanes with CXL enabled. It is manufactured on a 5 nm node from TSMC. With a 3.0 GHz typical and 3.5+ GHz turbo frequency, the Aum HPC processor is rated for a TDP of 300 Watts. It is capable of producing 4.6+ TeraFLOPS per socket. Below are illustrations and tables comparing Aum HPC to Fujitsy A64FX, another Arm HPC-focused design.

Chinese company Loongson, specializing in creating processors for usage in mainland China, has been steadily working on enabling its next-generation Loongson 3A6000 CPUs. Aiming to provide the performance level of Intel Willow Cove and AMD Zen 3, these new CPUs will use Loongson's custom LoongArch Instruction Set Architecture (ISA) with a new set of 64-bit superscalar LA664 cores. Today, thanks to the report from Phoronix, we find out that Loongson has submitted some Linux patches that enable the upcoming 3A6000 CPUs to work with Linux-based operating systems at launch. Interestingly, as the new CPU generation gets closer to launch, more Linux kernel patches begin to surface.

Today's kernel patches focus on supporting the hardware page table walker (PTW). As PTW can handle all fast paths of TLBI/TLBL/TLBS/TLBM exceptions by hardware, software only needs to handle slow paths such as page faults. Additionally, in the past, LoongArch utilized "dbar 0" as a complete barrier for all operations. However, this full completion barrier severely impacted performance. As a result, Loongson-3A6000 and subsequent processors have introduced various alternative hints. Loongson plans to ship samples to select customers in the first half of 2023, so we could see more information surfacing soon.

Hackboard today announced the launch of Hackboard 2, an affordable single-board computer (SBC) about the size of a smartphone but with the power of a desktop computer and one of the lowest-priced Intel-powered and Windows-based single-board computers ever made. It's ideal for Makers and Hobbyists, IoT, Edge Computing, and Embedded Solutions with customizable Hackboards, contact Support@Hackboard.com for more info. Soon, Hackboard will ship Personal Computer Kits, ideal for work-from-home users, remote learners and the classroom.

The Hackboard 2 allows users to create their ideal computing environment at an affordable price, while taking advantage of the benefits of industry standard technology. With optional 4G or 5G modules, users can connect to the internet from almost anywhere. Users can plug the system into nearly any monitor with an HDMI input, including their TV.

Thanks to the latest release of the Power On newsletter from Mark Gurman, we have additional information about Apple's upcoming M3 Pro chip. Currently in testing and reported on by an App Store developer, Apple is looking to upgrade the microarchitecture of the forthcoming chip and add additional cores to the system for more performance. As the report notes, the entry-level M3 Pro chip currently in testing will have 12 CPU cores, six for efficiency and six for performance tasks, with 18 graphics cores, all manufactured on TSMC's 3 nm node. The current baseline for M2 Pro is 10 CPU cores, where four are dedicated to efficiency, and six are dedicated to performance. The current generation entry-level M2 Pro also features a 16-core GPU, which is two cores fewer than the upcoming model.

Generally, the M3 Pro chip will boost integrated memory across the board, as the sample spotted in testing shows 36 GB of memory. The M2 Pro offered 32 GB in that memory tier, so a four GB increase is inbound there. Presumably, the 16 GB version (if it exists) and 64 GB version will also get memory bumps by going the M3 Pro route. Of course, we have to wait for more information as these chips become more widely available to developers.

Samsung has invested heavily in semiconductor manufacturing technology to provide clients with a viable alternative to TSMC and its portfolio of nodes spanning anything from mobile to high-performance computing (HPC) applications. Today, we have information that Samsung will present its SF4X node to the public in this year's VLSI Symposium. Previously known as a 4HPC node, it is designed as a 4 nm-class node with a specialized use case for HPC processors, in contrast to the standard SF4 (4LPP) node that uses 4 nm transistors designed for low-power standards applicable to mobile/laptop space. According to the VLSI Symposium schedule, Samsung is set to present more info about the paper titled "Highly Reliable/Manufacturable 4nm FinFET Platform Technology (SF4X) for HPC Application with Dual-CPP/HP-HD Standard Cells."

As the brief introduction notes, "In this paper, the most upgraded 4nm (SF4X) ensuring HPC application was successfully demonstrated. Key features are (1) Significant performance +10% boosting with Power -23% reduction via advanced SD stress engineering, Transistor level DTCO (T-DTCO) and [middle-of-line] MOL scheme, (2) New HPC options: Ultra-Low-Vt device (ULVT), high speed SRAM and high Vdd operation guarantee with a newly developed MOL scheme. SF4X enhancement has been proved by a product to bring CPU Vmin reduction -60mV / IDDQ -10% variation reduction together with improved SRAM process margin. Moreover, to secure high Vdd operation, Contact-Gate breakdown voltage is improved by >1V without Performance degradation. This SF4X technology provides a tremendous performance benefits for various applications in a wide operation range." While we have no information on the reference for these claims, we suspect it is likely the regular SF4 node. More performance figures and an in-depth look will be available on Thursday, June 15, at Technology Session 16 at the symposium.

According to data from Mercury Research posted on Twitter, AMD has gained CPU market share against Intel over the past year. AMD has gone from a 27.7 percent market share in Q1 2022 to a 34.6 percent market share in the first quarter of 2023, which is an increase of 6.9 percent, whereas Intel has gone from 72.3 percent to 65.4 percent, still placing Intel at almost two thirds of the market of x86 CPUs. It should be noted that this includes all types of CPUs, but it's unclear if it includes the chips AMD sells to Microsoft and Sony for their respective consoles.

A separate screenshot posted by @firstadopter details server CPU market share, excluding IoT, although it's unclear what that means in this specific case. Here, AMD has gained 6.3 percent market share, but the company has only gone from a meager 11.6 percent last year, to 18 percent this year, with Intel holding a massive 82 percent market share. AMD's gain here was lower than overall, but it shows that larger corporations are starting to adopt more and more AMD hardware on the server side, where in all fairness, AMD has taken something of a lead over Intel when it comes to the maximum amount of CPU cores each company can offer, even though the per core performance still lags behind Intel to a degree. It'll be interesting to see if AMD can maintain its momentum in market share gain once Intel launches more competitive products later this year, especially in the server market space.

As covered on TPU yesterday - Newegg has recently reduced the asking price for AMD's flagship desktop Ryzen 9 7950X3D processor to $629.99. The $70 discount below MSRP represents a 10% saving for keen customers looking to upgrade to some of the best enthusiast silicon available at the moment, but this offer is only available via Newegg's Ebay store. The e-tailer has also (at some point today) rolled out the same percentage cut for the step-down model - Ryzen 9 7900X3D - which brings its price down to $539.99 (originally $599.99) according to the updated Ebay listing.

The 12-core Ryzen 9 7900X3D CPU seems to offer less value in terms of cost per core/thread when compared to its more powerful 16-core sibling ($40/$20) - when taking the (likely temporary) Newegg price cut into account, resulting in a per core price of almost bang on $45 ($22.50 per thread). AMD's Ryzen 9 7900X3D processor has not been reviewed by TPU, but the general consensus seems to be that it gets ignored due to its occupying of the unfavorable middle-ground between the more capable 7900X3D and naturally cheaper 8-core Ryzen 7 7800X3D. The latter has yet to be discounted (across the North American hardware market), so it is possible that Newegg is trying to encourage an uptake of the really expensive models with its latest price offers.

Newegg is selling AMD's top-of-the-range Ryzen 9 7950X3D CPU for $629.99 - so $70 below the usual asking price in the USA - although buyers will have to venture onto the e-tailer's Ebay store in order to pick up some fancy 16-core silicon action, Newegg's main site lists the CPU for the regular sum of $699.99. This weekend's sudden discount represents the lowest ever price for Ryzen 9 7950X3D only two months into its product lifespan. According to Ebay's tracking stats (for this particular product page) only four units have sold in the past 24 hours, and that a "limited quantity" of AMD Ryzen 9 7950X3D CPUs are available to purchase.

TPU's February review of this processor was filled with praise (plus awards: Editor's Choice & Innovation), but the high asking price was a point of contention. This weekend's (likely temporary) discount now gives the potential buyer a little bit of extra value - with the CPU's per core price dropping just under $40, and per thread cost being slightly south of $20. AMD's Ryzen 7000X3D series has been through a bumpy batch since late April - some owners have reported hardware burnouts and AMD is currently working on fixes. Buyer perception could have been affected by recent publicity, so it is possible that Newegg is attempting to get some surplus stock out of the door.

Rather unexpectedly, a mostly unknown Chinese company called PowerLeader—who seems to have mainly been in the server market space until now—has launched an unheard of x86 compatible CPU. There's no product information on the company website, not even a press release on the CPU which was announced only yesterday according to IT Home. Fortunately, there's a picture of the new CPU, which gives us a few more details. The CPU appears to be called the Pstar P3 and has the model name P3-01105. Luckily the clock frequency of the CPU, which is 3.7 GHz, is also printed on the chip.

However, a closer look at the picture would have most people that are interested in tech scratching their heads, as it appears to be an Intel CPU using the LGA-1200 socket. Even the model name and what is supposedly the spec ID of the CPU, follows Intel's style of naming its CPUs. The comments on IT Home and elsewhere, all suggest that this is simply a re-branded Intel Core i3-10105 CPU, although it's entirely possible this is a chip that only looks like an Intel CPU. It's entirely possible that this is some kind of unannounced licensing deal by Intel, but if so, it would be the first such licensing deal Intel has done since the 286 days, to our knowledge. PowerLeader claims that the CPU is specifically designed for desktop computers and the company is expecting to sell 1.5 million units per year.

Intel has posted two product change notifications regarding the Gemini Lake Refresh, which is now reaching the end of its life. Launched in 2019 as a refresh to the original Gemini Lake, these low-end products had a longer lifespan than the original Gemini Lake (2017-2020). Most commonly found on low-end PCs, AIOs, and Mini PCs, these Gemini Lake Refresh CPUs were based on the 14 nm Goldmont Plus microarchitecture. Coming with up to four cores without HyperThreading, these CPUs were ideal for lower-power applications as their TDP was rated between 6-10 Watts.

Intel has separated the product change into two categories, with the first consisting of Celeron N4120, Celeron 4020, and Pentium Silver N5030, while the other features Celeron J4025, Pentium Silver J5040, Celeron N4020C, and Celeron J4125. Intel will ship the first group of CPUs by May 24, 2024, and the second by February 23, 2024. The last round of orders will go out by November 24, 2023, and August 25, 2023, respectively.

Researchers at the Technical University of Berlin have published a paper called "faulTPM: Exposing AMD fTPMs' Deepest Secrets," highlighting AMD's firmware-based Trusted Platform Module (TPM) is susceptible to the new exploit targeting Zen 2 and Zen 3 processors. The faulTPM attack against AMD fTPMs involves utilizing the AMD secure processor's (SP) vulnerability to voltage fault injection attacks. This allows the attacker to extract a chip-unique secret from the targeted CPU, which is then used to derive the storage and integrity keys protecting the fTPM's non-volatile data stored on the BIOS flash chip. The attack consists of a manual parameter determination phase and a brute-force search for a final delay parameter. The first step requires around 30 minutes of manual attention, but it can potentially be automated. The second phase consists of repeated attack attempts to search for the last-to-be-determined parameter and execute the attack's payload.

Once these steps are completed, the attacker can extract any cryptographic material stored or sealed by the fTPM regardless of authentication mechanisms, such as Platform Configuration Register (PCR) validation or passphrases with anti-hammering protection. Interestingly, BitLocker uses TPM as a security measure, and faulTPM compromises the system. Researchers suggested that Zen 2 and Zen 3 CPUs are vulnerable, while Zen 4 wasn't mentioned. The attack requires several hours of physical access, so remote vulnerabilities are not a problem. Below, you can see the $200 system used for this attack and an illustration of the physical connections necessary.

Overclocking expert Roman "der8auer" Hartung has unveiled the new Ryzen 7000 direct die water block, the AM5 Mycro Direct Die cooler. The new direct die water block promises significantly lower temperatures compared to all-in-one (AiO) liquid coolers.

Of course, users will have to remove the Ryzen 7000 series IHS in order for the block to be in direct contact with the processor, or more precisely, chiplets on the AMD Ryzen 7000 series CPUs. It works with Der8auer's high-performance heatspreader. As tested on the AMD Ryzen 9 7900X CPU, the new Mycro Direct Die cooler can lower the temperature down to 65°C, which is significantly lower than standard 280 mm AiO coolers. The Mycro Direct Die cooler shows its true cooling potential on overclocked CPUs, offering up to 28°C lower temperatures.

Keen-eyed hardware tipster momomo_us this week spotted that an upcoming AMD data center "Siena Dense" CPU has received verification, in the general sense, for SATA and PCI support - courtesy of the Serial ATA International Organization (SATA-IO). The information dump was uploaded to SATA-IO's online database on April 6 of this year - under the heading: "AMD EPYC 8004 Series Processors." As covered by TPU mid-way through this month the family of enterprise-grade processors, bearing codename Siena, is expected to be an entry-level alternative to the EPYC Genoa-X range, set for launch later in 2023.

The EPYC Siena series is reported to arrive with a new socket type - SP6 (LGA 4844) - which is said to be similar in size to the older Socket SP3. The upcoming large "Genoa-X" and "Bergamo" processors will sit in the already existing Socket SP5 (LGA 6096) - 2022's EPYC Genoa lineup makes use of it already. AMD has not made its SP6 socket official to the public, but industry figures have been informed that it can run up to 64 "Zen 4" cores. This new standard has been designed with more power efficient tasks in mind - targeting intelligent edge and telecommunication sectors. The smaller SP6 socket will play host to CPUs optimized for as low as 70 W operation, with hungrier variants accommodated up to 225 W. This single platform solution is said to offer 6-channel memory, 96 PCIe Gen 5.0 lanes, 48 lanes for CXL V1.1+, and 8 PCIe Gen 3.0 lanes.

AMD has today released another statement to the press, following on from controversy surrounding faulty Ryzen 7000X3D series processors - unlucky users are reporting hardware burnouts resulting from voltage-assisted overclocking. TPU has provided coverage of this matter this week, and made light of AMD's first statement yesterday. AMD ensures customers that it has fully informed ODM partners (motherboard manufacturers) about up-to-date and correct voltages for the Ryzen processor family - yet user feedback (via online hardware discussions) suggests that standard Ryzen 7000 models are also being affected by the burnout issue - this side topic has not been addressed by AMD (at the time of writing). This second statement repeats the previous one's recommendation that affected users should absolutely make contact with AMD Support personnel:

AMD Statement"We have root caused the issue and have already distributed a new AGESA that puts measures in place on certain power rails on AM5 motherboards to prevent the CPU from operating beyond its specification limits, including a cap on SOC voltage at 1.3 V. None of these changes affect the ability of our Ryzen 7000 Series processors to overclock memory using EXPO or XMP kits or boost performance using PBO technology. We expect all of our ODM partners to release new BIOS for their AM5 boards over the next few days. We recommend all users to check their motherboard manufacturers website and update their BIOS to ensure their system has the most up to date software for their processor.

Anyone whose CPU may have been impacted by this issue should contact AMD customer support. Our customer service team is aware of the situation and prioritizing these cases."

Samsung Electronics today reported financial results for the first quarter ended March 31, 2023. The Company posted KRW 63.75 trillion in consolidated revenue, a 10% decline from the previous quarter, as overall consumer spending slowed amid the uncertain global macroeconomic environment. Operating profit was KRW 0.64 trillion as the DS (Device Solutions) Division faced decreased demand, while profit in the DX (Device eXperience) Division increased.

The DS Division's profit declined from the previous quarter due to weak demand in the Memory Business, a decline in utilization rates in the Foundry Business and continued weak demand and inventory adjustments from customers. Samsung Display Corporation (SDC) saw earnings in the mobile panel business decline quarter-on-quarter amid a market contraction, while the large panel business slightly narrowed its losses. The DX Division's results improved on the back of strong sales of the premium Galaxy S23 series as well as an enhanced sales mix focusing on premium TVs.

Naughty Dog and Iron Galaxy have released the new and big Title Update 1.0.4.0 for the PC version of The Last of Us Part 1, bringing CPU and GPU optimizations for the game, as well as fixing some previous bugs and crashes.

According to the release notes, the latest update optimizes CPU and GPU use throughout the game, as well as improves both texture and graphical fidelity and resolution on Low and Medium settings. There are several big fixes, including crashes that may occur when quitting to the main menu or during shader building, as well as the crash that may occur on AMD CPUs with affinity limited to X3D cores. There is also a fix for an issue where textures are rendered on AMD GPUs.

According to Ming-Chi Kuo, an industry analyst known for making accurate predictions about Apple, we have some new information regarding Intel's Sapphire Rapids Xeon processors. As Kuo notes, Intel's major Cloud Service Provider (CSP) client, Microsoft, has notified the supply chain that the company is cutting orders of Sapphire Rapids Xeons by 50-70% in the second half of 2023. Interestingly, Intel's supply chain has notified the company to cut chip orders by around 50% amidst weak server demand. This comes straight after Intel's plans to start shipping Sapphire Rapids processors in the second quarter of 2023 and deliver the highly anticipated lineup to customers.

Additionally, Kuo has stated that Intel isn't only competing for clients with AMD but also with Arm-based CPUs. Microsoft also plans to start buying Arm-based server processors made by Ampere Computing in the first half of 2024. This will reduce Microsoft's dependence on x86 architecture and induce higher competition in the market, especially if other CSPs follow.

The global economy has faced increased inflation risks and downstream inventory corrections in 2H22, which have affected IC design houses faster than wafer foundries, as they are far more sensitive and responsive to market reversals. TrendForce reports that adverse factors such as weak overall consumption, restrictions from China, and the slowdown of corporate IT spending and CSP demand have impacted the revenue performance of the world's top 10 IC design houses in 4Q22, leading to a QoQ decline of 9.2%, or approximately US$33.96 billion.

TrendForce predicts that the revenue of these top 10 companies keep declining—though with a slight convergence—into 1Q23, owing to ongoing inventory corrections across the entire supply chain as well as Q1 being the traditional off-season for consumer demand. Demand will continue to be weak despite new product launches and inventory replenishment in the supply chain.