According to a Mercury Research report, global shipments of central processing units (CPUs) have experienced their largest decline in 30 years for the second time in a row. The total number of CPUs shipped in 2021 was 525 million units, a 5.7% decrease from 2020.<\/p>\n
According to the report, the decline is due to a combination of factors, including the COVID-19 pandemic, supply chain disruptions, and raw material shortages. Furthermore, the ongoing global chip shortage has hampered CPU production, resulting in fewer units available for purchase.<\/p>\n
Intel maintains its market share of 79.6% in CPU shipments, followed by AMD at 20.3%. However, both companies saw a drop in shipments, with Intel experiencing an 8.3% drop and AMD experiencing a 1.8% drop.<\/p>\n
CPU shipments are expected to fall 3% to 5% in the first half of 2023 before recovering in the second half, according to forecasts. However, according to the report, the decline is not indicative of a long-term trend, and the market is expected to recover in the coming years as supply chain disruptions ease and the global economy improves.<\/p>\n
The decline had a greater impact on x86 processors than on others. Furthermore, excluding Arm processors, 374 million CPUs were shipped in 2022, a 21% decrease from 2021. CPU revenues fell 19% to $65 billion in 2022. Inventory adjustments were the primary cause, having a greater impact than declining sales.<\/p>\n