AMD CEO says chip shortage could finally end next year — but there's a catch


AMD CEO says chip shortage could finally end next year — but there's a catch

We could finally see the global chip shortage come to an end next year. That's according to AMD CEO Lisa Su (via CNBC), who said that the situation will likely improve in the second half of 2022.

Su attended the Code Conference in California on Monday and spoke about how challenging it is for the chip makers to meet the demand for semiconductors having seen production hit by the COVID-19. "The pandemic has just taken demand to a new level,” she said. Nevertheless, manufacturers are hoping to make up for last year's reduced supply as new fabrication plants open up, which will likely result in more chips being produced in the next several months.

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Su said that the chip industry has "always gone through cycles of ups and downs, where demand has exceeded supply," though the AMD CEO also noted that "this time, it's different." Of course, Su doesn't expect this change to happen instantly. 

According to Su, the situation will improve at a steady pace as it will take time for the manufacturing capacity to return to normal. "It might take, you know, 18 to 24 months to put on a new plant, and in some cases even longer than that,” she explained.

But it looks like the situation may get worse before it gets better, as Su had noted that the first half of 2022 will be "likely tight." THis is somethign we've heard before with a shortage of chip indicating that buying a PS5 or Xbox Series X probably won't get easier before 2023, though Su's forecast might be a little more hopeful than previous reports.  

Over the past two years, the global chip shortage has drastically affected the chip making industry, resulting in the reduced production of desirable tech like the PS5 and the Xbox Series X consoles. as well as major graphics cards like the Nvidia GeForce RTX 3080. And those shortages has resulted in inflated prices for such tech as people desperately hunt for Xbox Series X restocks and PS5 restocks, with scalpers grabbing consoles and selling them on for extortionate prices. 

The chip shortage has managed to affect nearly every tech manufacturer. In fact, we've recently reported that even the already expensive Apple products could become even pricier as a result of the global chip shortage and increased supplier prices, though that hasn't happened with the iPhone 13. 

It's hard to forecast whether it will all come to an end anytime soon, however Su's words make us hopeful that we don't have to wait for years. 

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