Is the dawn coming? AMD: The "lack of core" is expected to improve in the second half of next year

AmD CEO Su Zifeng said that the construction of new factories in the future will help alleviate chip shortages.

On September 27, Su Zifeng pointed out at the code conference in California that with the completion of the new factory, the global chip shortage will be alleviated in the second half of 2022, "but the first half of the year will still be very tense." ”

Since the outbreak of the new crown epidemic in 2020, global personal computer (PC) sales have increased significantly, and the demand for chips and PC components has remained high due to the fact that most schools choose to teach online.

The pandemic has also created serious supply chain bottlenecks, making chipmakers still catching up with demand today. Even as the economy reopens, chip shortages have spread to other industries, including cars.

Su pointed out that it may take 18 to 24 months to build a new plant, and in some cases even longer. Investment in the new plant may have only started a year ago, so the "lack of cores" is expected to ease in the second half of next year.

AMD mainly sells processors and graphics chips for PCs, game consoles and servers. The "lack of core" since the epidemic has caused AMD's stock price to rise by more than 120% since the beginning of last year, just above $108.

Last year, AMD announced plans to buy Xilinx for $35 billion, but the company has yet to get all the approvals needed to complete the acquisition. Su Zifeng said AMD still expects the deal to close by the end of the year.

This article is based on Wall Street insights