AMD CEO Predicts Reducing Chip Shortage in 2022

The head of one of the largest manufacturers of central and graphic processors, AMD believes that the shortage of chips will remain until the first half of 2022.

In an interview with CNBC at the Code Conference 2021 event in Beverly Hills, Lisa Su stated that she expects the chip shortage to decrease only in the second half of 2022. Earlier, representatives of the company announced that the normalization of supplies of components for computers and consoles should be expected in the second half of 2021. As a result, this did not happen and now the optimistic forecast has been shifted by another year.

Today, the entire semiconductor industry continues to grapple with one of the most disastrous global supply challenges in the industry's history. Someone blames the shortage of GPUs primarily on COVID-19, while buyers of computer hardware tend to blame miners for the shortage of GPUs rather than the pandemic. In fact, both sides are right, but Lisa Su stated that mining is only a small and rather a volatile part of their business. Previously, similar words could be heard from AMD CFO Devinder Kumar.

However, it should be borne in mind that the volumes of AMD and Nvidia products offloaded to the market directly depend on the batches manufactured by suppliers in the person of the Taiwanese company TSMC, which has taken on the difficult task of serving the lion's share of the industry.

The improvements will come gradually, Su said, as it will take 18 to 24 months to launch the new plant, which began investment about a year ago. At the same time, such a forecast can still be called optimistic, if the company does not have additional problems as it is built.

While Nvidia aims to separate miners from gamers with various tricks by releasing “stripped-down” versions of its GPUs that limit hash rates, AMD has said it has no intention of discouraging Ethereum from mining on its GPUs. But at the same time, Su clarified that, first of all, they create their products specifically for the players, and not for the miners. A similar point of view on behalf of Nvidia was previously voiced by Jensen Huang.

Of course, neither gamers nor miners believed in such a position on the network. The former rightly pointed to the inflated cost of components, while the latter was unhappy with the shortage of devices.

Earlier this year, demand for video cards dropped markedly in China immediately following the mining ban. Then local trading platforms were flooded with ads of miners who wanted to give their goods in bulk. While some of them were trying to sell their goods at a loss, the other part of the crypto-miners “transferred” their capacities overseas in North America, or to Kazakhstan, located not far from the country, whose authorities soon decided to fight mining as well.

For the foreseeable future, GPU manufacturers should also consider the transition of the Ethereum network from Proof-of-Work to the Proof-of-Stake consensus algorithm, which does not require so much hardware to mine tokens. In this case, AMD CEO's forecast for 2022 may well turn out to be true.

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