The publication of the quarterly report by NVIDIA drew attention to the fact that it was forced to make upfront payments in the amount of about $ 3.5 billion in a couple of quarters in order to ensure itself a stable supply of products. AMD, too, has not stayed away from the trend, but claims to have secured a head start for growth for three or four years in advance.
CEO Lisa Su made relevant statements at a technology conference Credit suisse, which these days also allowed representatives of the management of Intel and NVIDIA to speak. The head of AMD began by admitting that the demand level in 2021 exceeded the most daring forecasts of 2020. The company has had to bring in many new partners to support the growth in product shipments this year, and so far they are doing their job excellently. AMD had to invest in the future growth of production volumes, although the head of the company does not specify in what areas and in what amounts these investments were made. She only explained that the investment will be enough to ensure the growth of AMD’s business for the next three or four years.
The next year will be a period of growth, as Lisa Su has no doubts, and this statement applies to all market segments in which AMD is present. The company has an adequate range of products to support the overall growth of the market. The CEO is pleased that the demand for personal computers has reached a new level as a result of the events of the last year. One PC per household is now not enough; each family member needs a separate computer. In 2022, AMD management expects the capacity of the PC market to remain at over 350 million units.
The company has confidence in its upcoming PC products, which it will announce in January at CES 2022. It finds them very competitive. In the laptop segment, AMD has made significant progress over the past five quarters, specifically in the direction of partnerships with manufacturers. Long-term plans predetermine AMD’s strong competitive position not only for 2022, but also for subsequent periods, as Lisa Su is convinced.
The head of AMD is not yet ready to talk about the timing of the appearance of gaming graphics solutions with the RDNA 3 architecture, but she is also sure of their competitiveness in advance. In the segment of discrete graphics, multichip layout will also find application, as the announcement of Instinct MI200 accelerators showed, but AMD is not yet ready to clarify whether this approach will be applied in the consumer segment. Lisa Su only admitted that the use of chiplets will inevitably appear in the plans of all market participants, since now this is the only way to maintain the rate of increase in computer performance.
Regarding the gaming console market, the head of AMD said that the problem of shortage of specialized products continues to maintain high prices in retail, although the company, for its part, is making every effort to saturate the market. The volume of supplies will increase next year, but demand will also grow. Overall, the current-gen consoles Microsoft and Sony are expected to peak in popularity by 2023. Seasonal fluctuations in demand in the near future will be smoothed out by the excess of demand over supply.