The semiconductor industry is going through hard times right now. The coronavirus pandemic that swept the entire world last year marked the beginning of a global chip shortage that is affecting more and more manufacturers every day. The crisis also affected AMD, one of the largest developers of processors and video cards in the world. But, in spite of everything, the AMD leadership does not lose optimism and believes that the situation will be resolved as early as next year.
On Monday, September 27, AMD CEO Lisa Su told reporters that in the second half of 2022, the global chip shortage will not be felt as sharply as it is now, and the crisis will subside. At the same time, she warned that the first half of the year is likely to be tense. According to Lisa Su, the coronavirus pandemic has raised the demand for chips and PC components to a new level, and it will take time for manufacturers to meet it. Improvements will occur as production capacity increases. So, in the coming months, new factories will finally start producing chips, the launch of which was originally planned for 2020. This will reduce the shortage of chips for computers and other devices.
“We have always gone through boom and bust cycles where demand exceeded supply and vice versa. But this time it’s different. The pandemic has just raised demand to a new level. And it can now take 18 to 24 months to launch a new plant, and in some cases even longer, ”said the head of AMD at the Code 2021 conference.
She added that the number of mergers and acquisitions in the semiconductor industry will increase in the near future. Merging is inevitable, she said, because scale is critical to doing something very important for the entire industry, even though startups sometimes create really cool things. AMD itself is also known for its deals. For example, last year the company announced the purchase for $ 35 billion of the American developer of integrated circuits of programmable logic Xilinx. The deal, which has already been approved by the regulators, should be closed before when of the current year.
It’s worth noting that AMD is a factoryless chip maker. In other words, the company entrusts the release of its products to other contract manufacturers.