Global chip shortage to ease up in second half of 2022, says AMD

Written by Stuart Thomas on Tue, Sep 28, 2021 11:39 AM

The global chip shortage has affected the chain of supply and demand throughout the past year and last year, and not just for graphics cards and processors, but all forms of electronic manufacturing. So far the chip shortage has shown no signs of slowing down, but AMD says it should ease up in the second half of 2022.

According to Dr. Lisa Su, CEO of AMD, in a recent interview, the first half of 2022 will be “likely tight.” When commenting on how the process was like before the pandemic, Su said: “we’ve always gone through cycles of ups and downs, where demand has exceeded supply, or vice versa.” However, “this time, it’s different,” as “the pandemic has just taken demand to a new level.

It might take, you know, 18 to 24 months to put on a new plant, and in some cases even longer than that,” Su said. “These investments were started perhaps a year ago.

Both Nvidia and AMD, two major manufacturers of PC hardware, previously stated that shortages would continue throughout 2021, which we have definitely seen this year so far.

It’s not just a problem for consumers though, as technology plays a major role in the world’s economy, and the holiday seasons provide a large boost to the economy, which is especially needed after the global pandemic. However, it looks as if issues will still persist even into the 2021 Holiday season.

The comments from Dr. Lisa Su about building new foundries are echoed by Intel’s own CEO Pat Gelsinger, who previously said that “it just takes a couple of years to build capacity.” However, Gelsigner also stated that they believe the chip shortage could even continue into 2023.

All this means is that retailers are forced to inflate prices to make up for profit losses, which in turn affects users who are forced to buy them at higher prices. Su’s comments may be a little optimistic compared to other manufacturers, but hopefully this means the chip shortage won’t affect Nvidia and AMD’s next-gen hardware, which are both due to launch at the end of 2022.

What do you think? Will the chip shortage last until 2023? How will this affect consumers? DO you think this will affect next-gen hardware from Nvidia and AMD? And when do you expect the shortages to ease up significantly? Let us know your thoughts!

Do you think the chip shortage will ease up in the second half of 2022?

Do you think prices and availability for next-gen RTX 40 and RX 7000 series will be affected still?

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11:57 Sep-28-2021

This info goes up and down every few weeks,(its getting better, its getting worse, its easing up start of next year, no wait middle of next year, it will last till 2023 etc) i will wait and see myself since these huge companies clearly have no clue either

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13:11 Sep-28-2021

True that, GD should pause articles on this topic :)

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11:51 Sep-28-2021

So nothing new.

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