AMD Improves Supply Chain to Overcome Chip Shortage
AMD is through with the problems of chip shortage to a great extent. It has reworked the global supply chain to cope with the increasing demand for chips across the world.
In the years of the coronavirus pandemic, the demand for electronic gadgets has increased significantly and this has led to the shortage of semiconductors in the market. However, AMD managed to grab the market share in the PCs as well as servers segments. Its current line of processors has made the company stand taller than rival Intel.
AMD CTO Mark Papermaster said the supply chain team of the company has worked closely with partners to remain ahead of the rivals and they focused on the segment since the start of the pandemic. Other companies started focusing on it very late.
AMD does not manufacture chips like Intel. It completely depends on GlobalFoundries, TSMC and a couple of more similar companies.
Papermaster added that they are getting advanced semiconductor nodes from the suppliers and they are simultaneously a large purchase of the chips. The team has secured the supply chain.
The auto industry has been hit hard by the global shortage of semiconductors. AMD mainly focused on the advanced smaller chips instead of the older chips which are mass-produced. It has been sourcing high-margin chips and this has channelized the resources and simultaneously increased revenue. It is projected the revenue may rise by 65 percent in 2022.
Analysts believe the chip shortage may not be solved anytime soon unless a drop in the demand is witnessed. It is further being predicted that the shortage may remain steady at least for the first half of the year.
The chip shortage has led to delayed delivery of many products. Some products have been delayed deliveries until 2023.