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InvestmentsWhat chip shortage? AMD books capacity years ahead to ease crunches By...

What chip shortage? AMD books capacity years ahead to ease crunches By Reuters


© Reuters. FILE PHOTO: An indication of AMD is seen on the China Digital Entertainment Expo and Conference, also called ChinaPleasure, in Shanghai, China July 30, 2021. REUTERS/Aly Song/File Photo

By Supantha Mukherjee

LISBON (Reuters) – Chip designer Advanced Micro Devices (NASDAQ:) has been in a position to skirt a lot of the issues linked with the worldwide chip provide scarcity by forecasting demand years prematurely, a high govt stated on Tuesday.

Demand for electronics devices from folks caught in houses due to the pandemic has led to a scarcity of semiconductors which are used from something from cellphones and automobiles.

But regardless of a squeeze in provide, AMD has been in a position to take market share away from rival Intel (NASDAQ:) in each PCs and servers with its newest line of processors.

“Our supply chain team has worked to make sure that we have months and years of forecast ahead into our supply chain,” Chief Technology Officer Mark Papermaster stated on the sidelines of the Web Summit convention in Lisbon, Portugal.

“Everybody has had to increase their focus on the supply chain but we did so from the very beginning of the pandemic.” Companies with present ties with chip fabrication firms like Taiwan’s TSMC had been additionally in a position to assure a gradual provide. AMD, which does not manufacture its personal chips like Intel, depends upon firms corresponding to TSMC and GlobalFoundries to make the chips for them.

“We are using cutting edge semiconductor nodes and we are a very large purchaser in this area, so that is certainly helpful in securing our supply chain,” Papermaster stated.

Contrary to automakers, who’re hardest hit by semiconductor scarcity, AMD focuses on the smaller, extra superior chips that are much less affected than the provision of mass-produced older chips.AMD has been specializing in high-margin chips, which not solely permits the corporate to channel its assets however will increase income, projected to rise 65% this 12 months.

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