On June 1, according to DIGITIMES, sources in the notebook industry said that cloud service providers will reduce their reliance on processor suppliers, as most of them want to develop their own Arm-based processors.

If the trend continues, the sources said, AMD and Intel's new generation of server processors will not be aligned with cloud service providers' server refresh rates.

Suppliers including AWS, Google, Alibaba, Baidu and Tencent are all actively working on in-house chip development, the report said. Alibaba Cloud has even started accepting requests from customers to validate an Elastic Compute Service (ECS) instance type called g8m. This instance type is powered by its custom Etian 710 SoC.

Microsoft is another supplier looking to develop its own server processors, the sources said. Microsoft has reportedly hired a prominent chip architect from Apple to bolster its own chip development efforts.

With more and more cloud service vendors looking to develop their own processors, server ODMs will have to respond to various requirements with greater manufacturing capabilities and flexibility in resource management, the sources said. In the past, these ODMs only dealt with designs based on Intel processor platforms.

Volume shipments of Intel's Eagle Stream processors could be delayed until the fourth quarter of 2022 or the first quarter of 2023, the sources said.

In this regard, Inventec commented that a new wave of replacement demand is unlikely to occur before 2023. Both AMD and Intel's next-generation server processors may not enter commercial production until the end of this year or January 2023, ODMs said.

Wiwynn believes that the key to stimulating the growth of the entire server market is end-market demand, not the availability of new processors.

According to industry sources, server ODMs are generally optimistic about shipments in the second half of 2022.