Explosive Growth of Commercial Opportunities Driven by Metaverse Projected to Generate Improvements in Computing Cores, Telecommunications, and Display Technologies, Says TrendForce

Nov. 16, 2021 —- By leveraging advantages such as lifelike interaction and virtual simulation, the metaverse will enable the growth of various applications ranging from virtual meetings, digital modeling and analysis, to virtual communities, gaming, and content creation, in the infancy of its development. According to TrendForce’s latest investigations, constructing the metaverse, which is more complex than the existing internet world, requires more powerful data processing cores, networking environments capable of transferring enormous data, and user-side AR/VR devices with improved display performances. These requirements will further drive forward the development of memory products, advanced process technologies, 5G telecommunications, and display technologies.

Regarding memory products, the conceptual framework of the metaverse is heavily contingent on the support provided by compute nodes. The data center industry will therefore experience more catalysts brought about by the metaverse, and there will be a corresponding growth in micro-servers and edge processing applications. The metaverse will also require an increase in the performance of storage devices. This means that SSDs, which are substantially faster than HDDs in writing data, will become an indispensable storage solution. On the DRAM front, take VR devices as an example; most existing devices are equipped with 4GB LPDRAM, which has the dual advantage of low power consumption and high performance. In the short run, manufacturers will not plan to massively upgrade the applications processors in these devices, which also operate in relatively simple processing environments. Hence, the growth in VR devices’ DRAM density will remain relatively stable. In terms of storage, on the other hand, because most AR/VR devices are equipped with Qualcomm chips whose specifications closely resemble those of flagship smartphone SoCs, AR/VR devices will also feature UFS 3.1 solutions.

Regarding advanced process technologies, the integration of AI and the increase in demand for computing power have resulted in a corresponding demand for high-performance chips, which enable improved graphics rendering and computation of massive amounts of data. Advanced process technologies allow the production of high-performance chips that deliver enhancements in performance, power consumption, and chip size. The realization of the metaverse requires high-performance chips for data and graphics processing, so high-performance CPUs and GPUs will assume key roles in this regard. TrendForce’s investigations indicate that, with respect to CPUs, the current mainstream products from Intel and AMD are manufactured at the Intel 7 node (equivalent to the 10nm node) and TSMC’s 7nm node, respectively, and the two companies will migrate to TSMC’s 3nm and 5nm nodes in 2022. With regards to GPUs, AMD’s wafer input plans for GPUs are basically in lockstep with its plans for CPUs, whereas Nvidia has been inputting wafers at TSMC’s 7nm node and Samsung’s 8nm node. Nvidia is currently planning to input wafers at the 5nm node, and the resultant GPUs will likely be released to market in early 2023.

Regarding networking and telecommunications, due to the metaverse’s demand for virtual interactions that are instant, lifelike, and stable, greater attention will be paid to the bandwidth and latency of data transmissions. 5G communication is able to meet this demand as it features high bandwidth, low latency, and support for a greater number of connected devices. Hence, the arrival of the metaverse will likely bring about the commercialization of 5G-related technologies at an increasingly rapid pace. Notably, some of these 5G technologies that are set to become the backbone of network environments powering the metaverse include SA (standalone) 5G networks, which delivers greater flexibility via network slicing; MEC (multi-access edge computing), which increases the computing capabilities of the cloud; and TSN (time sensitive networking), which improves the reliability of data transmissions. In addition, 5G networks will also be combined with Wi-Fi 6 in order to extend the range of indoor wireless connections. In light of their importance in enabling the metaverse, all of these aforementioned technologies have become major drivers of network service development in recent years.

Regarding display technologies, the immersive experiences of VR/AR devices depend on the integration of higher resolutions and refresh rates. In particular, an increase in resolution will receive much more attention in the market now that Micro LED and Micro OLED technologies have gained gradual adoption as display technologies shrink in terms of physical dimensions. As well, the traditional 60Hz refresh rate can no longer satisfy the visual demands of advanced display applications, meaning display solutions with higher than 120Hz refresh rates will become the mainstream going forward. In addition, the metaverse’s emphasis on interactivity demands display technologies that are not limited by traditional physical designs. The market for flexible display panels, which allow for free form factors, is expected to benefit as a result. At the same time, the metaverse is also expected to generate some demand for transparent displays, which serve as an important interface between the virtual world and real life.

Explosive Growth of Commercial Opportunities Driven by Metaverse Projected to Generate Improvements in Computing Cores, Telecommunications, and Display Technologies, Says TrendForce

By leveraging advantages such as lifelike interaction and virtual simulation, the metaverse will enable the growth of various applications ranging from virtual meetings, digital modeling and analysis, to virtual communities, gaming, and content creation, in the infancy of its development. According to TrendForce’s latest investigations, constructing the metaverse, which is more complex than the existing internet world, requires more powerful data processing cores, networking environments capable of transferring enormous data, and user-side AR/VR devices with improved display performances. These requirements will further drive forward the development of memory products, advanced process technologies, 5G telecommunications, and display technologies.

Regarding memory products, the conceptual framework of the metaverse is heavily contingent on the support provided by compute nodes. The data center industry will therefore experience more catalysts brought about by the metaverse, and there will be a corresponding growth in micro-servers and edge processing applications. The metaverse will also require an increase in the performance of storage devices. This means that SSDs, which are substantially faster than HDDs in writing data, will become an indispensable storage solution. On the DRAM front, take VR devices as an example; most existing devices are equipped with 4GB LPDRAM, which has the dual advantage of low power consumption and high performance. In the short run, manufacturers will not plan to massively upgrade the applications processors in these devices, which also operate in relatively simple processing environments. Hence, the growth in VR devices’ DRAM density will remain relatively stable. In terms of storage, on the other hand, because most AR/VR devices are equipped with Qualcomm chips whose specifications closely resemble those of flagship smartphone SoCs, AR/VR devices will also feature UFS 3.1 solutions.

Regarding advanced process technologies, the integration of AI and the increase in demand for computing power have resulted in a corresponding demand for high-performance chips, which enable improved graphics rendering and computation of massive amounts of data. Advanced process technologies allow the production of high-performance chips that deliver enhancements in performance, power consumption, and chip size. The realization of the metaverse requires high-performance chips for data and graphics processing, so high-performance CPUs and GPUs will assume key roles in this regard. TrendForce’s investigations indicate that, with respect to CPUs, the current mainstream products from Intel and AMD are manufactured at the Intel 7 node (equivalent to the 10nm node) and TSMC’s 7nm node, respectively, and the two companies will migrate to TSMC’s 3nm and 5nm nodes in 2022. With regards to GPUs, AMD’s wafer input plans for GPUs are basically in lockstep with its plans for CPUs, whereas Nvidia has been inputting wafers at TSMC’s 7nm node and Samsung’s 8nm node. Nvidia is currently planning to input wafers at the 5nm node, and the resultant GPUs will likely be released to market in early 2023.

Regarding networking and telecommunications, due to the metaverse’s demand for virtual interactions that are instant, lifelike, and stable, greater attention will be paid to the bandwidth and latency of data transmissions. 5G communication is able to meet this demand as it features high bandwidth, low latency, and support for a greater number of connected devices. Hence, the arrival of the metaverse will likely bring about the commercialization of 5G-related technologies at an increasingly rapid pace. Notably, some of these 5G technologies that are set to become the backbone of network environments powering the metaverse include SA (standalone) 5G networks, which delivers greater flexibility via network slicing; MEC (multi-access edge computing), which increases the computing capabilities of the cloud; and TSN (time sensitive networking), which improves the reliability of data transmissions. In addition, 5G networks will also be combined with Wi-Fi 6 in order to extend the range of indoor wireless connections. In light of their importance in enabling the metaverse, all of these aforementioned technologies have become major drivers of network service development in recent years.

Regarding display technologies, the immersive experiences of VR/AR devices depend on the integration of higher resolutions and refresh rates. In particular, an increase in resolution will receive much more attention in the market now that Micro LED and Micro OLED technologies have gained gradual adoption as display technologies shrink in terms of physical dimensions. As well, the traditional 60Hz refresh rate can no longer satisfy the visual demands of advanced display applications, meaning display solutions with higher than 120Hz refresh rates will become the mainstream going forward. In addition, the metaverse’s emphasis on interactivity demands display technologies that are not limited by traditional physical designs. The market for flexible display panels, which allow for free form factors, is expected to benefit as a result. At the same time, the metaverse is also expected to generate some demand for transparent displays, which serve as an important interface between the virtual world and real life.

（Image credit: Ready Player One）