Following the recent launch of the Arm-based PC platform processor Snapdragon X Elite, which received high market acclaim, Qualcomm is reportedly doubling down by venturing into server processors. This expansion is expected to further intensify the competition amid traditional server processor giants Intel and AMD.

According to a report from the global tech media Android Authority, following the launch of the Snapdragon X Elite/Plus processors, Qualcomm is internally developing a server processor with the codename SD1, featuring their custom Oryon cores.

Reportedly, Qualcomm’s next-generation server processor will be manufactured using TSMC’s 5-nanometer process (N5P), featuring 80 Oryon cores with a maximum clock speed of 3.8GHz, 16-channel DDR5 memory with a maximum transfer rate of 5600MHz, 70 PCIe 5.0 interface links, and support for CXL v1.1. It will use a 9470-pin LGA socket and support dual-socket server configurations.

Furthermore, the status of this project is currently unconfirmed, but Qualcomm partners reportedly received briefings about it at the end of 2021 and early 2022, aligning with previous rumors. This isn’t Qualcomm’s first foray into server processors; they previously launched the Arm-based Centriq series in 2017, which was discontinued a year later.

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(Photo credit: Qualcomm)

According to a Reuters, despite the U.S. expanding export controls on advanced artificial intelligence (AI) chips to China last year, Chinese universities and research institutions have recently acquired high-end AI chips from Nvidia through distributors.

Reviewing hundreds of bidding documents, Reuters found that since the U.S. expanded chip export controls on November 17 last year, ten Chinese entities have acquired Nvidia’s advanced chips embedded in server products produced by U.S. firms Supermicro, Dell, and Taiwanese company Gigabyte Technology.

Based on this Reuters report, bidding documents not reported from November 20 last year to February 28 this year show that Chinese institutions such as the Chinese Academy of Sciences, Shandong Artificial Intelligence Institute, Hubei Earthquake Administration, Shandong University, Southwest University, a technology investment company owned by the Heilongjiang Provincial Government, a state-owned aerospace research center, and a space science center have purchased these server products from distributors, which include some of Nvidia’s most advanced chips.

In response, a Nvidia spokesperson told Reuters that the products involved in these bids were exported before the ban was implemented in the United States. The spokesperson stated that the report does not imply that Nvidia or any of its partners violated export control regulations, and the proportion of these products in global sales is negligible. Nvidia complies with U.S. regulatory standards.

Both Supermicro and Dell stated that they would investigate and take action if any third-party illegal exports or re-exports are found. Gigabyte, the Taiwanese company mentioned in the report, told the Central News Agency that it has fully complied with relevant regulations since the chip ban took effect on November 17 last year, and has not shipped any restricted products to China. Gigabyte reiterated its strict adherence to relevant Taiwanese laws and international embargo regulations, stating that there has been no violation of any embargo regulations.

In 2023, the United States further restricted Chinese businesses from acquiring high-end AI chips. At that time, Nvidia responded by launching a China-specific version, the H20. TrendForce also presented relevant data for the Chinese market, indicating that Chinese CSP companies, including ByteDance, Baidu, Alibaba, and Tencent (BBAT), accounted for approximately 6.3% of high-end AI server shipments in 2023. Considering the ban and subsequent risks, it is estimated that the proportion in 2024 may be less than 4%.

(Photo credit: NVIDIA)

Intel collaborates with Foxconn, Microloops, and Inventec to introduce a new cooling technology. Boasting superior performance compared to conventional liquid cooling, this initiative, alongside Gigabyte and Wiwynn, aims to enter the server immersion liquid cooling technology market, positioning themselves for potential orders.

TrendForce’s Insights:

1. Intel Teams Up with Taiwanese Manufacturers to Pave the Way for Liquid Cooling Technologies, Targeting Immersive Water-Cooled AI Server Orders

Intel, in collaboration with Foxconn, Microloops, and Inventec, introduces a brand new Liquid Cooling solution. This technology, capable of managing Thermal Design Power (TDP) exceeding 1500W, utilizes the principles of physical pressurization to facilitate rapid liquid flow for efficient heat dissipation.

With a threefold improvement in performance over conventional liquid cooling, the liquid cooling plate circulates water to dissipate heat. Future developments include non-conductive liquid solutions to mitigate leakage risks.

Simultaneously, Gigabyte’s subsidiary, GIGA Computing Technology, partners with liquid cooling experts CoolIT and Motivair to unveil cutting-edge liquid cooling solutions. The strategic focus on liquid and immersive liquid cooling aims to enhance the sustainability and energy efficiency of data centers.

Wiwynn, also keenly interested in liquid cooling technology, has secured substantial orders from Middle Eastern clients by prioritizing two-phase immersion cooling technology, with rumors suggesting the order’s value is approximately USD 4 billion.

The advantages of two-phase cooling technology include fanless operation, rapid heat dissipation, noiseless and vibration-free performance, and higher cooling energy efficiency. Moreover, it is less susceptible to environmental influences, ensuring normal usage.

On the other hand, Taiwanese manufacturers, AURAS Technology and AVC (Asia Vital Components), are actively developing and mass-producing open-loop liquid cooling and immersion liquid cooling technologies.

Due to the novelty of immersion cooling technology, the current market demand visibility is relatively low. However, major Taiwanese contract manufacturers are increasingly focusing on the technical development and introduction of immersion cooling solutions. This is primarily driven by the growing demand for high-end AI servers, which require efficient computation and often generate high power consumption.

At present, only immersion liquid cooling can provide a cooling solution surpassing 1500W, meeting the requirements of large-scale data centers. Consequently, numerous Taiwanese manufacturers are actively engaging in the development of this technology to seize the opportunities presented by the initial wave of immersion liquid cooling products.

2. Short-Term Dominance of 3D VC Air Cooling and Open Liquid Cooling Technologies in Heat Dissipation Solutions

Due to the need for adjustments in facility structure, including the layout of cooling spaces, immersion liquid cooling comes with higher construction costs. Cases of immersion liquid cooling in large-scale data centers are also relatively rare.

In consideration of cost, many enterprise users still opt for 3D VC (Vapor Chamber) air cooling technology to establish their data centers, aiming to save on the significant costs associated with facility modifications.

3D VC air cooling and open liquid cooling technologies are the current primary options for heat dissipation solutions. The retrofitting cost for 3D VC is twice that of traditional cooling modes, while the cost for liquid cooling solutions can be up to 10 times higher than traditional modes.

Therefore, enterprise users need to tailor their server deployments based on specific requirements, taking into account the Thermal Design Power (TDP) to choose the corresponding heat dissipation solution.

For instance, AI servers with power consumption ranging from 1000 to 1500W can utilize open liquid cooling solutions, while those below 1000W may adopt the 3D VC cooling approach.

With the target of achieving net-zero emissions by 2050, both China and Europe impose restrictions on the Power Usage Effectiveness (PUE) of data centers, limiting it to no higher than 1.4.

In anticipation of this, server OEMs and cooling solution providers are expected to increase the development and offerings of liquid and immersive liquid cooling products. This trend aims to provide data centers with customized solutions and services, aligning with the evolving energy efficiency requirements.

A global surge in data center expansion is observed in 2023, emphasizing a notable trend in the rise of Green Data Centers (Green DCs). Major players embarking on the construction of large-scale data centers encounter challenges. Power constraints affecting capacity growth, mounting pressure to enhance IT efficiency, combined with the continual increase in energy costs, amplify operational and construction difficulties in data centers.

TrendForce’s Insights:

1. Prioritizing energy efficiency and conservation in data centers

Modern enterprises heavily rely on data centers, but the associated energy costs are substantial. The market is expected to grow by over 25% from 2023 to 2030. Current strategies for improving energy efficiency encompass (1) reducing the energy consumption of IT equipment, (2) minimizing losses in distribution devices and uninterruptible power supplies, (3) implementing airflow management to optimize cooling, and (4) optimizing cooling and humidification systems through Heating, Ventilation, and Air Conditioning (HVAC).

2. Global shift to net-zero carbon emissions and the rise of low-carbon Green DCs

The construction of Green DCs with lower carbon is becoming a pivotal approach for major players, especially in the design of IT infrastructure for server rooms. This includes components such as network routers, switches, storage systems, firewalls, server racks, and redundant power supplies, all of which are subject to energy-saving requirements.

Key practices involve adopting liquid cooling and energy-efficient core IT equipment to achieve improved energy efficiency. Certification standards, such as Green Mark DC Platinum Certification, play a crucial role. The TIA-942 standard, by TIA and ANSI, distinguishing data centers into Tiers I through IV, often requires compliance with certifications like ISO 20000 and ISO 27001. Additionally, the international standard ISO/IEC 22237 lays the groundwork for globally planning, constructing, and operating data centers based on shared principles in the future.
(Image: TIA)

Wistron experienced a slowdown in shipments for product lines like PCs and displays in October, following the prior demand surge. However, their GPU-related AI server products continue to maintain their growth trajectory. Simultaneously, Wiwynn, a subsidiary of Wistron, witnessed a remarkable 20% month-over-month revenue increase due to the rising momentum in AI server-related project shipments, positioning them at the third-highest monthly revenue level in their history for the same period, reported by CTEE.

Both Wistron and Wiwynn hold an optimistic outlook for their AI server products, expecting the growth momentum to extend into the next year. In contrast, they foresee a return to growth trends for non-AI general-purpose servers and cloud data center servers next year, while AI server growth is expected to remain notably strong.

Wistron plays a pivotal role in the AI server supply chain and remains unaffected by high-end GPU shortages and U.S. export restrictions. Shipments in Q4 continue to exhibit consistent month-to-month growth, and the anticipated trend to peak in the second half of the year remains steadfast. Moreover, there are indications of a slight seasonal increase in general-purpose servers in Q4.

In a recent earnings call, Wiwynn maintains an optimistic stance for Q4 and the upcoming year. With the evident growth momentum from AI servers, they anticipate that developments in AI-related projects will lead to a continuous improvement in AI server product shipments.

Furthermore, Wiwynn’s third-largest customer business and AI server revenue both exceeded 10% in the third quarter, marking a significant milestone for the company. Back in October, Wiwynn had set up  a server plant in Malaysia to meet the surging demand for AI servers.

According to TrendForce’s anticipation, in 2023, the shipment of AI servers (including those equipped with GPUs, FPGAs, ASICs, etc.) is expected to exceed 1.2 million units, with a year-on-year increase of 37.7%, accounting for 9% of the total server shipments. In 2024, it is projected to further grow by more than 38%, with shipments reaching approximately 1.676 million units, and the share of AI servers will exceed 12%.
(Image: Wistron)

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