Ethernet Controller and Adapter Port Shipments Reached New Heights in 1Q 2020

“The growth of controller and adapter shipments, for 10 Gbps ports, in particular, outpaced the growth of server units by a considerable amount for the past two quarters,” said Baron Fung, Research Director at Dell’Oro Group. “System vendors have been increasing their inventory of Intel processors, a portion of which have integrated Ethernet ports, and discrete Ethernet controllers in light of on-going disruptions from the global pandemic. Furthermore, Chinese system vendors, with Huawei in particular, are likely to face additional bans in sourcing components from U.S. suppliers and are increasing their stock of these essential components on hand to meet near-term demand,” added Fung.

Additional highlights from the 1Q 2020 Controller and Adapter quarterly report include:

Total controller and adapter port shipments increased 31 percent year-over-year.
Microsoft, Google, and Facebook accounted for 91 percent of the 50 Gbps controller and adapter port shipments.
Amazon commanded 85 percent share of the Smart NIC market based on ports shipped in 1Q 2020, although Broadcom led all adapter vendors with port shipments of 58 K.