Intel Launches Server CPU 'Sapphire Rapids'
Expecting Expansion of High-Value DDR5 DRAM Market
"Sapphire Rapids Effect Will Appear Immediately"
[Asia Economy Reporter Kim Pyeonghwa] The memory semiconductor industry is eagerly anticipating the full-scale launch of Intel's server central processing unit (CPU) 'Sapphire Rapids.' Sapphire Rapids is a product that will expand the high value-added Double Data Rate (DDR) 5 DRAM market amid the memory industry's difficulties due to the semiconductor downturn. Market analysts predict that the effects of the Sapphire Rapids launch could appear as early as the second quarter.
Intel Korea held a press briefing on the morning of the 11th at the Federation of Korean Industries building in Yeouido, Seoul, to introduce the '4th Generation Intel Xeon Scalable Processor (codename: Sapphire Rapids).' This briefing was held following Intel's official announcement of the Sapphire Rapids launch on the 10th (local time) as a domestic product presentation.
Sapphire Rapids is a new server CPU product introduced by Intel. It attracted attention from the memory industry even before its release because it is the first Intel server CPU to support the latest DRAM standard, DDR5. DDR5 offers more than twice the speed of the previous DDR4 and 30% higher power efficiency. It is considered suitable for products requiring large-scale data processing, such as servers. It is a high value-added product with about 30% higher profitability than DDR4.
Samsung Electronics introduced a 12nm-class 16Gb DDR5 DRAM last month. It is expected to be supplied as a server product. / [Photo by Samsung Electronics]
The memory industry expects that with Intel, which holds the majority share of server CPUs, launching Sapphire Rapids, the DDR5 market can open in earnest. When a new server CPU is released, various companies with data centers and hyperscalers (global data center operators) replace their servers. Naturally, the demand for DDR5 DRAM installed in the new servers will inevitably increase.
However, the launch of Sapphire Rapids was delayed by more than a year compared to the original forecast. As a result, the activation of the DDR5 market was also postponed. Meanwhile, major memory players such as Samsung Electronics, SK Hynix, and US-based Micron have completed the development of server DDR5 DRAM and have been waiting for the market to open.
The memory industry believes that now that Sapphire Rapids has been released to the market, DDR5 DRAM sales will begin in earnest. An industry insider said, "Since there is accumulated demand waiting for server replacement, we expect the effects of the launch to appear immediately." The Korea Eximbank Overseas Economic Research Institute forecasted in a report this month that server launches equipped with Sapphire Rapids will accelerate from the second quarter.
The problem is the economic recession. As economic uncertainties increase this year, there is a possibility that data center investments may not be made as expected. Kim Yangpaeng, a senior researcher at the Korea Institute for Industrial Economics & Trade, explained, "Usually, it takes six months to a year for a product to spread widely, and DDR4 took two to three years to reach a 60% market share. While it could take as little as six months in a best-case scenario, given the poor conditions of other demand industries and the global economy, the situation needs to be monitored."
Market research firm Omdia predicts that DDR5 will account for 20.1% of total DRAM this year. Next year, the share is expected to increase to 37.3%, surpassing DDR4's 17.0%. By 2025, DDR5's share is projected to grow to 40.5%, approaching a majority.
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