ESX\ESXi CPU scheduler, by default, tries to place the vCPUs of an SMP virtual machine into as much Last-Level Cache (LLC) as possible. This is to maximize the cache capacity and memory bandwidth available to the virtual machine.
This policy might not be ideal for some workloads. In this case, the advanced setting vsmpConsolidate to TRUE instructs the ESX\ESXi scheduler to place the vCPUs of an SMP virtual machine into the fewest LLC’s possible. This policy better cache sharing for the virtual machines.
If you think your SMP virtual machine might gain a performance benefit by having better cache sharing, enable the vSMP consolidate setting as follows:
Using the vSphere client: