AMD Says Shortage will Last Till Second Half of 2021

AMD CEO says the PS5, Xbox, and PC chip shortage will last into late 2021. During AMD’s Q4 Earning Call, CEO Lisa Su says the shortage caused by COVID-19 delays will impact supply throughout 2021. They will increase capacity for the last half of the year as production returns to normal standards.

“And so we do see some tightness through the first half of the year, but there’s added capacity in the second half. And then as in terms of 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.”

CEO Lisa Su
CEO Lisa Su

AMD makes the CPU and GPU on the Xbox Series X/S. Phil Spencer, Head of Xbox, previously stated they are working with AMD to increase production.

Originally reported on by TomsHardware.com, it was noted that AMD’s inventory actually increased last quarter by $930 Million unsold units. AMD states this is due to chips being in varying states of production. Indicating that AMD is in fact ramping up production.

It may be difficult to get the latest system for the next few months. By the next holiday season, we should be well-stocked. Making holiday shopping far less stressful.

Sources: TomsHardware, IGN

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