In an interview with CNBC during the Code Conference in Beverly Hills in California, AMD's CEO, Dr. Lisa Su, stated that she expects chip shortages to continue in the first half of 2022 & ease down in the second half of the same year.
AMD CEO Expects Chip Shortages To Continue In 2022, Should Ease Down In Second Half of 2022
The overall semiconductor industry has been hit with one of the worst chip shortages ever during the COVID-19 pandemic. Things started to get bad in late 2019 and got worse between 2020-2021. The industry has been trying to rebound from the shortages but everything has been unsuccessful so far.
AMD and several other chip giants have had their fair share of ups and downs in terms of supply but Lisa Su acknowledges that it is different this time.
The global chip shortage will become less severe in the second half of 2022, AMD CEO Lisa Su said on Monday, though she warned that the first half of the year will be “likely tight.”
“We’ve always gone through cycles of ups and downs, where demand has exceeded supply, or vice versa,” Su said at the Code Conference in Beverly Hills, California. “This time, it’s different.”
“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.”
“The pandemic has just taken demand to a new level,” Su said.
According to AMD's CEO, the chip shortages, which are not limited to just CPUs and GPUs, will continue in the first half of 2022 with signs of recovery expected within the second half of 2022. Previously, both AMD's & NVIDIA's CEO had stated that the shortages will persist throughout this year (2021) and that has turned out to be true.
Dr. Lisa Su was recently appointed by US President, Joe Biden, as a part of his council of Advisors on Science & Technology. She was among the several key executives from the tech industry that also include NVIDIA, Microsoft, and Google personnel. Talking to CNN, US Commerce Secretary, Gina Raimondo, stated that the chip shortage has become so bad that it will be a huge problem impacting the Holiday Season which plays a crucial part in helping boost the US economy post-COVID-19.
Honestly I think we're going to be struggling with it well into next year until we can really smooth out some of these bottlenecks."
The Biden administration has been pushing Congress to enact a $52 Billion bill known as the 'Chips for America Act' that would 'incentivize increased semiconductor production & research in the US.'
What we have seen so far is that as supply is unable to meet the demand of consumers, retailers and distributors around the globe are artificially inflating the prices. And users end up with no choice but to pay those higher prices to gain access to tech products. Intel's CEO, Pat Gelsinger, believes that there's a slight chance that the chip shortage might continue into 2023 which is even worse news. We hope it doesn't come down to that and normalization is seen in the supply and chip industry by the end of 2022.