What chip shortage? AMD books capacity years ahead to ease crunches

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A motion of AMD is seen astatine the China Digital Entertainment Expo and Conference, besides known arsenic ChinaJoy, successful Shanghai, China July 30, 2021. REUTERS/Aly Song/File Photo

LISBON, Nov 2 (Reuters) - Chip decorator Advanced Micro Devices (AMD.O) has been capable to skirt astir of the problems linked with the planetary spot proviso shortage by forecasting request years successful advance, a apical enforcement said connected Tuesday.

Demand for electronics gadgets from radical stuck successful homes owed to the pandemic has led to a shortage of semiconductors that are utilized from thing from mobile phones and cars.

But contempt a compression successful supply, AMD has been capable to instrumentality marketplace stock distant from rival Intel (INTC.O) successful some PCs and servers with its latest enactment of processors.

"Our proviso concatenation squad has worked to marque definite that we person months and years of forecast up into our proviso chain," Chief Technology Officer Mark Papermaster said connected the sidelines of the Web Summit league successful Lisbon, Portugal.

"Everybody has had to summation their absorption connected the proviso concatenation but we did truthful from the precise opening of the pandemic."

Companies with existing ties with spot fabrication companies similar Taiwan's TSMC (2330.TW) were besides capable to warrant a dependable supply. AMD, which doesn't manufacture its ain chips similar Intel, depends connected companies specified arsenic TSMC and GlobalFoundries (GFS.O) to marque the chips for them.

"We are utilizing cutting borderline semiconductor nodes and we are a precise ample purchaser successful this area, truthful that is surely adjuvant successful securing our proviso chain," Papermaster said.

Contrary to automakers, who are hardest deed by semiconductor shortage, AMD focuses connected the smaller, much precocious chips which are little affected than the proviso of mass-produced older chips. AMD has been focusing connected high-margin chips, which not lone allows the institution to transmission its resources but increases revenue, projected to emergence 65% this year.

Reporting by Supantha Mukherjee successful Lisbon; Additional reporting by Stephen Nellis successful San Francisco; Editing by Sandra Maler

Our Standards: The Thomson Reuters Trust Principles.

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