AMD admits its on track to address the wafer shortage

AMD admits it’s on track to address the wafer shortage

AMD has already had to invest in the capacity of partners in manufacturing substrates used in the manufacture of microprocessor components in the midst of a pandemic. This week, Senior Vice President Forrest Norrod stated that the shortage of substrates in the consumer segment is over and AMD is also very pleased with the work that has been done to optimize the TSMC process for the company’s needs.

    Image source: AMD

Image source: AMD

Forrest Norrod made relevant statements at the conference Goldman Sachswhich ended this week. AMD’s component shortages, he admitted, in recent months have not been driven by TSMC’s or GlobalFoundries’ ability to supply their customers with chips containing processors, but by the limited supply of substrates needed to manufacture those processors . In the past two years, according to an AMD representative, the company has invested heavily in increasing the production of substrates by its partners.

By the end of this year, Norrod says, the substrate shortage in the consumer segment will be over, next year the problem will be eliminated in the server segment, where it is felt more.

Forrest Norrod spoke about the relationship with contractors related to the timeline for the transition to new lithographic standards. Each new process step, he says, is carefully optimized by TSMC for AMD’s needs. In addition, the latest companies have different requirements for technical processes than developers of mobile processors for smartphones. When it came to 7nm technology, AMD was at the forefront of the market. AMD’s senior vice president acknowledges that the transition to 5nm took a little longer, but that was due to market conditions, not technical conditions. If we talk about the server segment, AMD expects to update the technical process every 18 or 21 months.

AMD is very satisfied with the first results of the migration to the 5 nm process technology. It should ensure the company’s absolute leadership in both transistor performance and energy efficiency. The technical process itself does not determine the pace of progress of AMD products, as Norrod explained the company anticipates the needs of the market at a given point in time.

Ruth Cotter, AMD Senior Vice President of Investor Relations, added that as each lithography phase becomes more expensive, combined with the ability of new products to meet customer needs, the payback factor must also be considered when determining the migration timeline. In this regard, AMD is greatly helped by the layout with heterogeneous chiplets. Process technology is just one of the factors driving the development of AMD products, and at the core is an architecture that is developed based on customer needs.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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