What chip shortage? AMD books capacity years ahead to ease crunches – Reuters

A sign of AMD is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. REUTERS/Aly Song/File Photo
LISBON, Nov 2 (Reuters) – Chip designer Advanced Micro Devices (AMD.O) has been able to skirt most of the problems linked with the global chip supply shortage by forecasting demand years in advance, a top executive said on Tuesday.
Demand for electronics gadgets from people stuck in homes due to the pandemic has led to a shortage of semiconductors that are used from anything from mobile phones and cars.
But despite a squeeze in supply, AMD has been able to take market share away from rival Intel (INTC.O) in both PCs and servers with its latest line of processors.
"Our supply chain team has worked to make sure that we have months and years of forecast ahead into our supply chain," Chief Technology Officer Mark Papermaster said on the sidelines of the Web Summit conference in Lisbon, Portugal.
"Everybody has had to increase their focus on the supply chain but we did so from the very beginning of the pandemic."
Companies with existing ties with chip fabrication companies like Taiwan's TSMC (2330.TW) were also able to guarantee a steady supply. AMD, which doesn't manufacture its own chips like Intel, depends on companies such as TSMC and GlobalFoundries (GFS.O) to make the chips for them.
"We are using cutting edge semiconductor nodes and we are a very large purchaser in this area, so that is certainly helpful in securing our supply chain," Papermaster said.
Contrary to automakers, who are hardest hit by semiconductor shortage, AMD focuses on the smaller, more advanced chips which are less affected than the supply of mass-produced older chips. AMD has been focusing on high-margin chips, which not only allows the company to channel its resources but increases revenue, projected to rise 65% this year.
Our Standards: The Thomson Reuters Trust Principles.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Information, analytics and exclusive news on financial markets – delivered in an intuitive desktop and mobile interface.
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved

source