What is the expected growth rate in the data center TAM for the next 3 years? 
 product execution. We have rebuilt our leadership team, now fully assembled for the first time. And together, we have reestablished OKRs throughout the organization to drive common purpose and, importantly, a system of accountability. In the coming months, we will begin to share more with the investment community on the next evolution of our TikTok model to drive consistent and predictable cadence of process and design innovation.
As we look beyond the near term, the semiconductor industry continues to be at the beginning of a new structural growth phase driven by four superpowers: one, ubiquitous compute; two, pervasive connectivity; three, cloud-to-edge infrastructure; and four, AI. Combined, these drivers support a semiconductor industry eclipsing $1 trillion by 2030. What remains very clear even during this period of uncertainty is the growing importance of silicon to the global economy and to each of our daily lives. However, as a result of macro weaknesses, we now expect the PC TAM to decline roughly 10% in calendar year '22, characterized by broadening consumer weakness and relative strength in enterprise and higher-end SKUs.
Importantly, our Q2 PC unit volumes suggests we are shipping below consumption as some of our largest customers are reducing inventory levels at a rate not seen in the last decade and, along with some pricing actions, should allow for sequential growth into the second half even as some customers manage inventory lower. While COVID-related dynamics, like work-from-home and school-from-home, pulled forward some demand, they also solidified the PC as an essential tool in the post-pandemic world. For example, PC and Chromebook usage remains historically high even as the pandemic's most acute impacts diminished. Markedly higher per PC usage and a larger installed base, including 600 million PCs that are four years and older, supports a PC TAM sustainably above 300 million units.
Data center trends are still well entrenched. Data has been growing exponentially at a 50% CAGR for over 20 years. But until recently, it has been uneconomical to turn that data into true actionable insights. With the advent of AI, along with CPUs, GPUs and accelerators, we now have the tools to access and use more of the data we create, driving significantly higher compute demand and a multiyear CAGR in the data center TAM of at least mid-teens.
Despite these drivers, demand will not be immune from economic headwinds. In addition to match set issues, which have constrained shipments for multiple quarters, increasing economic concerns are leading to a reduction in second-half demand. As a result, we have lowered our server TAM assumptions to reflect more modest growth in 2022. Against this backdrop, let me highlight key developments in our businesses.
In response to supply chain and match set issues, we closely collaborated with our customers and suppliers to effectively address their most critical needs. We rapidly adjusted to changing market conditions, made cost reductions and leveraged smart capital to execute toward our IDM 2.0 strategy. Despite significantly lower revenue impacting overall gross margins, Q2 saw continued strong performance in our factory network, and we exceeded our wafer cost goals with 10-nanometer unit cost declining approximately 8% year on year. In TD, we continued to deliver on the promise of Moore's Law and our ambitions to deliver 1 trillion transistors in the device by 2030.
Intel 4 details were released at the recent VLSI conference to positive reviews, and we've now taped in the first stepping of the Granite Rapids CPU and expect to power on this quarter. In the second half of this year, we plan to tape in numerous internal and foundry customer test chips on various process nodes, including Intel 3 and Intel 18A. In our client business, Alder Lake momentum continues. We have the strongest PC lineup in five-plus years, and we remain unapologetic about our growing leadership and share position.
We are building on Alder Lake leadership with Raptor Lake in the second half of this year and Met
 product execution. We have rebuilt our leadership team, now fully assembled for the first time. And together, we have reestablished OKRs throughout the organization to drive common purpose and, importantly, a system of accountability. In the coming months, we will begin to share more with the investment community on the next evolution of our TikTok model to drive consistent and predictable cadence of process and design innovation.
As we look beyond the near term, the semiconductor industry continues to be at the beginning of a new structural growth phase driven by four superpowers: one, ubiquitous compute; two, pervasive connectivity; three, cloud-to-edge infrastructure; and four, AI. Combined, these drivers support a semiconductor industry eclipsing $1 trillion by 2030. What remains very clear even during this period of uncertainty is the growing importance of silicon to the global economy and to each of our daily lives. However, as a result of macro weaknesses, we now expect the PC TAM to decline roughly 10% in calendar year '22, characterized by broadening consumer weakness and relative strength in enterprise and higher-end SKUs.
Importantly, our Q2 PC unit volumes suggests we are shipping below consumption as some of our largest customers are reducing inventory levels at a rate not seen in the last decade and, along with some pricing actions, should allow for sequential growth into the second half even as some customers manage inventory lower. While COVID-related dynamics, like work-from-home and school-from-home, pulled forward some demand, they also solidified the PC as an essential tool in the post-pandemic world. For example, PC and Chromebook usage remains historically high even as the pandemic's most acute impacts diminished. Markedly higher per PC usage and a larger installed base, including 600 million PCs that are four years and older, supports a PC TAM sustainably above 300 million units.
Data center trends are still well entrenched. Data has been growing exponentially at a 50% CAGR for over 20 years. But until recently, it has been uneconomical to turn that data into true actionable insights. With the advent of AI, along with CPUs, GPUs and accelerators, we now have the tools to access and use more of the data we create, driving significantly higher compute demand and a multiyear CAGR in the data center TAM of at least mid-teens.
 Despite these drivers, demand will not be immune from economic headwinds. In addition to match set issues, which have constrained shipments for multiple quarters, increasing economic concerns are leading to a reduction in second-half demand. As a result, we have lowered our server TAM assumptions to reflect more modest growth in 2022. Against this backdrop, let me highlight key developments in our businesses.
In response to supply chain and match set issues, we closely collaborated with our customers and suppliers to effectively address their most critical needs. We rapidly adjusted to changing market conditions, made cost reductions and leveraged smart capital to execute toward our IDM 2.0 strategy. Despite significantly lower revenue impacting overall gross margins, Q2 saw continued strong performance in our factory network, and we exceeded our wafer cost goals with 10-nanometer unit cost declining approximately 8% year on year. In TD, we continued to deliver on the promise of Moore's Law and our ambitions to deliver 1 trillion transistors in the device by 2030.
Intel 4 details were released at the recent VLSI conference to positive reviews, and we've now taped in the first stepping of the Granite Rapids CPU and expect to power on this quarter. In the second half of this year, we plan to tape in numerous internal and foundry customer test chips on various process nodes, including Intel 3 and Intel 18A. In our client business, Alder Lake momentum continues. We have the strongest PC lineup in five-plus years, and we remain unapologetic about our growing leadership and share position.
We are building on Alder Lake leadership with Raptor Lake in the second half of this year and Met