AMD cuts production of Ryzen 7000 “Zen 4” CPUs due to declining PC market performance
According to an internal report from AMD, the company is planning to reduce production of its Ryzen 7000 "Zen 4" CPUs. AMD is planning to reduce production of its Ryzen 7000 "Zen 4" CPUs amid a decline in the PC market and the overall poor reception of the AM5 platform.
The AM5 platform is still considered new and AMD expects it to attract user interest with a range of powerful features such as support for DDR5 and PCIe 5.0 technology, however this in turn has raised the price of motherboards, with even the recently launched entry-level B650 series failing to meet AMD's promised $125.
The report also points to the enthusiast high-end market as what is keeping AM5 alive right now, with the Ryzen 9 7900X having become the best seller and reportedly selling the highest number of units in the entire Zen 4 lineup. The $549 chip appears to be more attractive than the Ryzen 7 700X ($399) and Ryzen 5 7600X ($299). This statistic is not based on retailer-specific sales, but on worldwide shipments and retail figures.
The reason for this is that most entry-level buyers who want better gaming performance can downgrade directly to the Ryzen 7 5800X3D on their existing AM4 platform. for them, the 8 Zen 3 cores still offer decent multi-threaded performance, while the 3D V-Cache gas pedal delivers gaming performance in excess of 12,900K. now, the debate over the possible simultaneous AM4 and AM5 platforms The possibility of adding an X3D model has increased. AMD is ready for the launch of the Ryzen 7000 3D V-Cache, which should be announced at CES 2023, but it remains to be seen if AM4 gets the new X3D option.
Even without the X3D option, the AM4 lineup has plenty of power, with discounted sales of 6, 8, 12 and 16 core chips on the market that are far more cost-effective than the expensive models on the AM5 platform.
From the statistics shared by TechEpiphany it is easy to see the gap between AM4 and AM5 sales.
Currently, almost all major retailers have large inventories of AMD Ryzen 7000 CPUs and AM5 motherboards, so there is no need to keep production going at full capacity unless there is huge demand. As the market improves in 2023 and demand starts to pick up, AMD may simply resume normal production, but by then, the common chips will have to share some capacity with other Zen 4 product lines, such as X3D and mobile parts. Not to mention Zen 4 EPYC CPUs.