Focus on cutting-edge process technology helps AMD avoid chip shortages

When AMD executives are asked about the factors shaping the company’s confidence in the possibility of increasing revenue by 65% ​​for the current year – not the easiest for the industry, they usually mention long-term contracts with suppliers. The company is also fortunate in the sense that the scarcity is felt most strongly in the mature lithography segment, and its products are predominantly manufactured at the cutting edge.

Image source: AMD

Image source: AMD

AMD CTO Mark Papermaster Interviewed Indian Edition BusinessLineby talking about current industry trends and customer relationships. As an AMD spokesperson admitted, over the years, customers’ need for custom-made processors is unlikely to disappear completely, so the company will always be ready to develop custom-made processors for large customers. For them, such solutions will be cheaper than developing components in-house, as explained by Mark.

When it came to the semiconductor crisis hitting the auto industry, AMD’s CTO said the company does not share the same production lines as its auto maker customers. Historically, the latter have concentrated on more mature lithography, and AMD is minimally dependent on it. The crisis affected AMD, but to a lesser extent than the automotive industry. An additional factor guaranteeing stable supply and growth was the company’s ability to predict its own chip needs in advance and inform contractors accordingly about the need to increase production volumes. Without such work, the company would not have been able to ensure the stability of product supplies.

The balance of supply and demand in the industry will begin to recover in the second half of next year and in 2023, according to Mark Papermaster. With its most sought-after cutting-edge lithography products, AMD sees no reason to decline in demand for the foreseeable future. The cyclical nature of market fluctuations is typical for the memory and storage segment, and the company currently depends on it minimally.

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Dylan Harris

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

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