On May 31, according to DIGITIMES, industry insiders said that despite the market’s recent concerns that Meta and Google may cut capital expenditures, TSMC and other chip makers have not seen a reduction in orders for data center applications.

There are rumors that Google and Meta plan to lower their capital spending outlook for this year. But neither cloud provider has yet made a capex adjustment.

Earlier this year, Amazon Web Services (AWS) announced plans to extend the life of its servers and networking equipment by a year. Nvidia's recently announced hiring halt has also led to further doubts about whether demand in the data center market is slowing.

Despite worsening global inflation and other negative macro factors, digital transformation in the enterprise space is accelerating, with chipmakers including foundries and IC design firms continuing to see server chips, according to sources in the server industry supply chain. of strong orders and remain optimistic about server demand in the coming years.

In addition, chip shortages will improve with new server platforms from AMD and Intel, and suppliers involved in the server supply chain are all gearing up for this year's server market. The supply chain is expecting a new wave of growth, the sources said.

TSMC and other suppliers involved in Nvidia's supply chain have also not been notified of any order reductions, the sources said. These suppliers expect demand for Nvidia's processors to surge this year compared to 2021.

Sources believe both Intel and AMD will launch their next-generation server platforms later in 2022, a sign that the digital transformation of enterprises shows no sign of slowing down. AMD has begun shipping samples of its 5nm EPYC Genoa CPUs and continues to ramp up shipments of the Milan series processors.

According to reports, AMD's main partner TSMC expressed optimism about the demand for HPC-related equipment applications. The foundry said it expects sales from HPC chips to grow strongly in 2022.