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AMD Vows to Resolve GPU Shortage: We Are Ramping Production

Last year, AMD finally released a family of graphics processors that can compete against Nvidia’s high-end offerings in terms of performance. Unfortunately, AMD could not meet demand for new GPUs. But apparently there is light at the end of the tunnel as AMD is ramping up production.

“We introduced our Radeon 6700 XT desktop CPU with leadership 1440p gaming performance in March, and are on track for the first notebooks featuring our leading edge mobile RDNA 2 architecture to launch later this quarter,” said Lisa Su, CEO of AMD, during the company’s latest earnings call. “We expect Radeon 6000 series GPU sales to grow significantly over the coming quarters as we ramp production.” 

Increasing GPU supply is not a particularly easy task. AMD’s manufacturing partner TSMC operates at a nearly 100% load. Furthermore, production cycle of a modern process is around three months long, so a chip AMD orders today may not be shipped until sometime this summer.

“We see good customer ordering patterns and strong backlog,” said Su. “Then, we have also seen that the supply chain has been tight overall for the semiconductor industry. And we’ve been working very closely with our supply chain partners. So, we also have good visibility to additional supply as we go throughout the year.”

AMD’s graphics revenue in the first quarter of fiscal 2021 increased by “a strong double-digit percentage year-over-year and sequentially” due to the success of its Radeon RX 6000-series GPUs. 

Sadly for AMD, all graphics cards today are sold at prices that are dramatically higher than their MSRPs, so increasing its sales might be a difficult task since even graphics boards meant to be inexpensive are priced unreasonably high due to demand amidst component shortages.