The second quarter of this year witnessed a remarkable surge in CPU shipments, spurred by tariff uncertainties. Shipments increased by about 7.9% from the first quarter, climbing from nearly 62 million to over 67 million units.
In response to the Trump administration’s decision to impose a 10% tariff on nearly all imports, hardware manufacturers scrambled to boost imports to the US before these tariffs took effect. Fortunately, key products such as semiconductors, PCs, smartphones, and chips were exempt from these tariffs.
Jon Peddie Research reports that this uncertainty fueled growth in the PC market, leading to a spike in CPU shipments. Typically, the early quarters of the year see minimal growth, but the tariff situation shifted this trend, impacting future shipments as well.
Jon Peddie, President of JPR, noted that the looming tariffs accelerated PC CPU growth, with AI PCs having a lesser influence. On the server side, shipments increased by 0.6% quarter-over-quarter and 22% year-over-year. While Intel still holds a 73% market share, AMD boosted its share from 25% to 27% over the past year, thanks to its superior performance across segments.
Looking ahead, the introduction of new tariffs may pose challenges for both Intel and AMD. Chips produced domestically will be exempt, giving Intel’s new US-based fabs a potential advantage. Meanwhile, AMD relies on Taiwan’s TSMC for fabrication. Even though TSMC is currently exempt from tariffs, AMD might face challenges if it continues without US-based fabrication, potentially leading to increased costs and reduced market appeal.
This evolving landscape in CPU shipments and market dynamics is a testament to the impact of global trade policies on the tech industry.
