China's x86 CPU capacity growth rate could remain below the global pace through 2028, Bernstein analysts say in a research note. They note that the shortage of AI accelerators in China is also a constraint on server CPU demand, as AI racks require both GPUs and CPUs to function. China's cloud service providers cannot deploy AI infrastructure at the pace that demand warrants, they note. Meanwhile, CPU providers' ability to scale production is limited by the domestic foundry bottleneck, as China's largest foundry SMIC's advanced-node capacity is finite and shared across multiple priority programs, they say. However, the pace could pick up from 2028 onward as China ramps up domestic advanced-chip fabrication capacity. (sherry.qin@wsj.com)
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China's x86 CPU capacity growth rate could remain below the global pace through 2028, Bernstein analysts say in a research note. They note that the shortage of AI accelerators in China is also a constraint on server CPU demand, as AI racks require both GPUs and CPUs to function. China's cloud servi…