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 Leisure Expo and Convention, often known as ChinaJoy, in Shanghai, China July 30, 2021. REUTERS/Aly Track/File Picture

By Supantha Mukherjee

LISBON (Reuters) – Chip designer Superior Micro Gadgets (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 prime govt stated on Tuesday.

Demand for electronics devices from individuals caught in properties as a result of pandemic has led to a scarcity of semiconductors which are used from something from cell phones and vehicles.

However 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 provide chain crew has labored to be sure that we’ve got months and years of forecast forward into our provide chain,” Chief Expertise Officer Mark Papermaster stated on the sidelines of the Internet Summit convention in Lisbon, Portugal.

“Everyone has needed to improve their deal with the availability chain however we did so from the very starting of the pandemic.” Firms with present ties with chip fabrication corporations like Taiwan’s TSMC had been additionally in a position to assure a gentle provide. AMD, which does not manufacture its personal chips like Intel, will depend on corporations corresponding to TSMC and GlobalFoundries to make the chips for them.

“We’re utilizing innovative semiconductor nodes and we’re a really giant purchaser on this space, so that’s actually useful in securing our provide chain,” Papermaster stated.

Opposite to automakers, who’re hardest hit by semiconductor scarcity, AMD focuses on the smaller, extra superior chips that are much less affected than the availability 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 yr.

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