The 4th Gen Xeon Sapphire Rapids-SP launch has been delayed (yet again) to early 2023. This is because Intel’s 10nm ESF node, now known as “Intel 7” is still suffering from mediocre yields. A report from TrendForce claims that the production yield rate of the Sapphire Rapids-SP dies is still under 60%. Furthermore, the entire product stack is affected because it’s a modular design. As a result, volume production of these chips has been pushed from Q4 to the first quarter of 2023.
The most obvious outcome of this blunder is that multiple OEMs and SCPs will be skipping Sapphire Rapids in favor of AMD’s Epyc Genoa family. The latter is planning to ship to clients this December. According to analysts, Team Red’s server share presently stands between 15-20% in late 2022 and is expected to rise to 25% or more the following year.
Following the semiconductor shortages of 2021, AMD has invested heavily in its ABF capacity. This should remove the supply bottleneck limiting its share gains over its larger rival. In addition, the change in market demand will also allow AMD to move past the 2S bottleneck, further increasing its overall shipments.