Lisa Su, CEO of AMD
Scott Millian | CNBC
The global chip shortage will become less severe in the second half of 2022, AMD Chief Executive Officer Lisa Su said Monday, though she cautioned that the first half of the year would be “likely tight.”
Chip makers are still catching up with demand in the wake of severe supply chain bottlenecks caused by the pandemic. But Su said that factories planned last year will likely start producing chips in the coming months, helping to alleviate shortages of computer parts and other microchips.
“We’ve always gone through cycles of ups and downs, where demand has outpaced supply, or vice versa,” Su said at the Code conference in Beverly Hills, California. “It’s different this time.”
Su said the improvements will be incremental as more manufacturing capacity becomes available.
“It can take, you know, 18 to 24 months to set up a new plant, and in some cases it can take longer than that,” she said. These investments may have started a year ago.
AMD It primarily sells processors and graphics chips for computers, game consoles, and servers. Since the Covid-19 pandemic began in 2020, PC sales have jumped as consumers around the world have bought new computers for their homes so their children can go to school remotely.
“The epidemic has just raised demand to a new level,” Su said.
But demand for chips and computer parts has remained high even as economies reopen and shortages spread to other industries, including automobiles. That helped boost AMD stock by more than 120% since the start of last year, to just over $108.
Su said AMD supports CHIPS, which became law earlier this year and includes subsidies to encourage microchip manufacturing in the United States.
AMD does not make its own chips, and instead outsources production to foundries or chip factories. AMD competitor Intel Corporation He said this year It will continue to invest in microchip manufacturing and will be a foundry for other chip companies.
Last year, AMD announced it was planning to buy Xilinx in a $35 billion deal, but the company has yet to receive all the approvals it needs to complete the acquisition. Su said that AMD is still seeing the deal expire by the end of the year.
She added that there is likely to be more deal-making in the semiconductor industry.
“Unification is inevitable,” Su said. “Startups can do really great things. I have a lot of respect for those people who are starting their own companies. But if you want to do something really big for this industry, you know, scale is important.”