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AMD Expects Chip Shortages to Become Less Severe in 2nd Half of 2022

AMD Expects Chip Shortages to Become Less Severe in 2nd Half of 2022 - News

by William D'Angelo , posted on 04 October 2021 / 1,755 Views

AMD CEO Lisa Su speaking at the Code Conference in Beverly Hills, California and reported by CNBC says the chip shortage that has caused demand to outstrip supply of the PlayStation 5 and Xbox Series X|S consoles will become less severe in the second half of 2022. However, she did warn the first half of 2022 will likely remain tight. 

"We've always gone through cycles of ups and downs, where demand has exceeded supply, or vice versa," said Su. "This time, it's different."

Improvements to manufacturing will be gradual as more capacity becomes available. 

"It might take, you know, 18 to 24 months to put on a new plant, and in some cases even longer than that," she said. "These investments were started perhaps a year ago."

Su added, "The pandemic has just taken demand to a new level."  

She expects there to be more consolidation as more deals are made in the  semiconductor industry.

"Consolidation is inevitable," Su said. "Start-ups can do really cool things. I have tremendous respect for these these folks who start their own companies. But if you want to do something very large for the industry, you know, scale is important."


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.


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12 Comments
thevideogameninja (on 04 October 2021)

So... it's going to be just as difficult as it is now to get next gen hardware in 2022 up until possibly half way through the year, got it.

That also means there is going to be no dip in the demand for these consoles any time soon and we are going to continue to see next gen hardware being pushed at 2 to 3 times its MSRP.

-CHIPS N' DIP NINJA APPROVED-

  • +5
VAMatt thevideogameninja (on 04 October 2021)

I don't know where you're seeing sales at 2x-3x MSRP. At the peak, in the US, PS5 and XBSX were hitting 2X sometimes, but that didn't last long. Both were available under $800 within a month after launch. I haven't paid super close attention the last few months, but an Ebay search just now shows completed sales of XBSX and Digital PS5 in the $700-$750 range, and the PS5 with disk drive selling in the upper $700s. So, more like 50% to 60% over MSRP.

  • +5
thevideogameninja VAMatt (on 04 October 2021)

Walmart.com

They have been hovering around $1,000 most of the time but I have seen them go much higher. In fact, I just checked now and they are $950 at Walmart.

Other places I have looked at (depending on the date.) have made the Walmart prices look downright cheap in comparison.

-SCALPERS DELIGHT... NINJA APPROVED-

  • 0
VAMatt thevideogameninja (on 04 October 2021)

Listed prices aren't selling prices though. You have to look for items that have actually sold.

  • +1
Pemalite (on 05 October 2021)

Ah... Retribution to those who said I was wrong that supply constraints would outlast 2021.

  • -1
DonFerrari (on 04 October 2021)

Thanks Captain obvious for saying what Sony said couple months ago and MS couple weeks ago.

  • -2
mjk45 DonFerrari (on 04 October 2021)

Except in this case the captain obvious Lisa Su is in charge of all those tsmc chip contracts amd's contract with Sony and MS doesn't end with chip design it also covers manufacturing so who better to answer that question.

  • +3
DonFerrari mjk45 (on 05 October 2021)

That wasn't a question, that is a know fact.

  • -1
mjk45 DonFerrari (on 05 October 2021)

She was speaking at a conference so the chip shortage would have been a subject of interest plus what's the person who's best placed to comment on the situation supposed to say it's like saying tsmc shouldn't comment on the chip shortage because everybody else as.

  • +1
DonFerrari mjk45 (on 06 October 2021)

Yes I do know why she needed to say it, and that well VGC puts repetitive articles a lot of times (there were like a week or 2 worth of 2 articles a day for a single interview from Phil, or 3 articles in a couple days for one new from Sony and most of the info on the articles repeated in one another). O thanks captain obvious was just something teasing because well we all know it.

  • 0
mjk45 DonFerrari (on 06 October 2021)

yes it's human nature.

  • 0
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