Computer

There are no servers! Intel and AMD face delays of more than a year

Modern servers use more components than a home PC, and despite the fact that manufacturers tend to prioritize their production, the demand for data center machines is so high that there is a widespread shortage that is even more severe than in the consumer industry. Major Taiwanese server makers such as Inventec, Mitac Computing and Wiwynn complain about component shortages, citing industry sources such as AMD or Intel.

Without server CPUs, the shortage is worse than ever

It takes more than three months to finish the process of building a complex chip like a CPU using advanced process technology. This chip then needs to be tested and packaged properly, which greatly prolongs its normal delivery time. Inventen and Mitac Computing have not been able to fulfill all the orders they had as they have not been able to source components, according to the report, and this logically limits their ability to generate revenue despite strong demand for their products. DigiTimes notes that Mitac has been unable to fulfill around 30% of its orders due to a shortage of server chips.

Wiwynn, which primarily produces rack servers and has a customer base that includes Facebook, «has been hit by a shortage of switches as most of its orders are rack servers »According to the source, who added that the problem does not look to improve this year.

Industry sources surveyed by the source indicated that the shortage of server components is unlikely to ease until at least the first quarter of 2022, but the most pessimistic say it could even last all of next year, something very possible. because as we mentioned at the beginning right now they are working with delays up to 70 weeks.

What impact does the server industry have on the consumer market?

Servers

For the average consumer, it may seem that the fact that there is a shortage in the server industry does not have to affect the consumer market, but it is literally the opposite and it is for two reasons: the first one is that when After all, the professional market is the one that provides manufacturers with the highest income, which is why manufacturers such as Intel or AMD always tend to prioritize their products for this market. That the shortage in the server market is now so great could end up impacting the consumer market if manufacturers decide to divert resources from it to alleviate the shortage in the professional market.

On the other hand, that companies and data centers do not have access to new servers can also have a devastating impact on the market: on the one hand, they will not be able to replace defective parts, which could lead to drops in service or reduction of their infrastructure; Remember that we are not only talking about SMEs, but also giant companies like Amazon, Google, Facebook and others. On the other hand, it could also mean losses for these companies that could end up having an impact on the price that users pay for their products, so ultimately the consumer market will end up being equally impacted.

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