"Circuit shortage eases until the end of 2022"

The lack of circuits has gone from being a problem for experienced technology geeks to affecting the world at large during the pandemic. Previous forecasts have claimed that the shortage will last until at least 2024, which has led companies such as TSMC, Intel, Samsung with the backing of governments to invest amounts in the trillion class. Now, however, there are increasing indications that the most acute shortage is over sooner than expected.

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In an interview with the finance and economics magazine CNBC, AMD’s CEO Lisa Su says that the situation is gradually improving and that a clear relief can be discerned by the second half of 2022. The statement is in line with a recent report from the analysis company IDC, which states that the current deficit will turn into a surplus as early as 2023.

We’ve always gone through cycles of ups and downs, where demand has exceeded supply, or vice versa. This time, it’s different. […] The pandemic has just taken demand to a new level.

The improvements that are expected are solely attributed to increased production capacity. Here, Lisa Su points out that it takes at least 18–24 months to build new production lines and in many cases longer than that (which is the case with completely new factories / editor’s note). The investments made to meet the shortage of circuits, which worsened during the pandemic, did not take shape until the second half of 2020.

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During the circuit failure, AMD has prioritized high-margin products, which include upper-class processors, laptops, Epyc series servers, and Sony Playstation 5 and Xbox Series S / X system circuits. Processors in lower price ranges have been left behind, as have graphics cards where large circuits and large amounts of memory make them less profitable than processors.

AMD does not have its own circuit manufacturing and relies almost exclusively on Taiwan Semiconductor Manufacturing Company (TSMC), which is also the player that individually plans to make the largest investments. Over a three-year period, TSMC intends to invest $ 100 billion in new factories and has also flagged that more is underway.