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In the Q2 quarter, AMD's performance growth was largely contributed by the EPYC server chip, which increased by 50% from the previous quarter. In addition to its own EPYC processor, AMD also licensed high-performance Zen processors. For Chinese companies, what impact will this have on AMD?
AMD CEO said that cooperation with Chinese partners will strengthen AMD's position in the Chinese market. In addition, China's customized server chips do not conflict with their own EPYC processors. AMD will still sell its own EPYC processors.
The EPYC processor will only become more important in the coming period. AMD's goal is to grab a double-digit server chip market share from Intel, and AMD will use the 7nm Zen 2 core for the next-generation EPYC processor. It can be seen that it is important. But it is this importance that makes AMD's licensing of EPYC processors to Chinese companies even more compelling.
For AMD's authorization of X86 processors for Chinese companies, we have reported many times before. Recently, Dhyana's domestic X86 processor was exposed online. It originated from the cooperation agreement between AMD and China Haiguang Group in 2016. AMD licenses the high-performance X86 architecture to Chinese companies with a license fee of $293 million. The Dhyana processor is the product of the cooperation between the two parties. It is mainly for the server market and can be said to be a modified version of the AMD EPYC processor in China.
In order to avoid possible legal troubles, AMD and China Haiguang Group have a complicated mechanism. AMD and THATIC Haiguang have established two joint ventures - Chengdu Haiguang Microelectronics Co., Ltd. (CHMT), AMD holds 51%, and the other is Chengdu Haiguang Integrated Circuit Design Company (CHICD), AMD holds 30% of shares, it can be seen that this company is dominated by China.
CHMT will be responsible for the customization of the Zen processor, while the Chinese-controlled CHICD company will customize the other parts of the SoC and marketing work according to customer needs.
This kind of arrangement can please both China and the United States, on the one hand to ensure that Chinese companies can obtain high-performance server processors, on the other hand, the United States does not have to worry about technology outflows.
At the Q2 quarterly earnings meeting, AMD CEO Su Zifeng was also asked by analysts about this issue. Dr. Su said that AMD did form a joint venture with Chinese partners in the past two years. The whole idea is to increase the share in China's domestic market. At present, AMD has a good relationship with its partners, and the product progress is very smooth. The Chinese customized version of the processor will be a supplement to the AMD product portfolio.
According to Su Zifeng's statement, AMD's own EPYC processor will continue to be sold to domestic customers. In some domestic markets, products that cooperate with Chinese companies will be listed. At present, domestic partners have not officially announced products. AMD is also not convenient to publish details, to wait for domestic partners to announce the results.
PS: From the point of view of AMD, their own EPYC processor and domestic customized version of the processor does not have the possibility of alternatives, AMD will continue to sell its own EPYC chip, The domestically-made customized ECYC processor will have advantages in specific fields. In many domestic fields, the core technology is now required to be self-controllable, so the domestic customized version of the EPYC processor has the opportunity to enter such a market..
