Despite AMD’s record breaking 2020, it anticipates PS5, Xbox Series X/S, and PC chip shortages to last through at least the first half of 2021.
As reported by Tom’s Hardware, AMD recently held its Q4 2020 earnings call and AMD’s president and CEO Lisa Su discussed these shortages in response to an investor asking about the magnitude of supply constraints due to growth and the COVID-19 pandemic.
While AMD saw “a strong revenue ramp” in its business, Su mentioned that “overall demand exceeded our planning.” As a result, there were supply constraints near the end of the year in the PC market, low-end PC market, and in the gaming markets.
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Su also discussed how this means she expects chip shortages in the first half of 2021 as AMD works to improve supply, but she reassures that there is “added capacity” in the second half of 2021 that should hopefully help.
“And so we do see some tightness through the first half of the year, but there’s added capacity in the second half,” Su said. “And then as in terms of how we — how we think about these things, so for our full-year annual guide, we do have good visibility on both the demand side and the supply side. And that was the basis for the guidance across the businesses.”
Su previously spoke to Xbox head Phil Spencer, as AMC produces the CPU and GPU of the Xbox Series X/S, and both teams are working as hard as they can to meet the high demand of the next-gen consoles. Last year, Microsoft’s CFO Tim Stuart has cautioned that these shortages could continue through the first quarter of 2021.
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