AMD expects shortages of PS5, Xbox and PC chips by the first half of 2021

Despite AMD’s record break in 2020, it predicts that the shortage of PS5, Xbox Series X / S and PC chips will last at least the first half of 2021. As reported by Tom’s Hardware, AMD recently held its earnings conference call of the fourth quarter of 2020 and AMD President and CEO Lisa Su discussed these shortages in response to an investor who asked about the magnitude of supply constraints due to growth and the COVID-19 pandemic.

While AMD saw “a strong revenue slope” in its business, Su mentioned that “overall demand has exceeded our planning”. As a result, there were supply restrictions towards the end of the year in the PC market, in the low-cost PC market and in the gaming markets.

Su also discussed how this means that she expects chip shortages in the first half of 2021 while AMD works to improve supply, but she reaffirms that there is “additional capacity” in the second half of 2021 that should help.

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“And therefore, we see some tightening in the first half of the year, but there is additional capacity in the second half,” said Su. “And in terms of how we – how we think about these things, for our year-round annual guide, we have good visibility on both the demand and supply side. And that was the basis for guidance in everyone the business. “

Su previously spoke with Xbox boss Phil Spencer, while AMC produces the Xbox Series X / S CPU and GPU, and both teams are working as hard as they can to meet the high demand for next generation consoles. Last year, Microsoft CFO Tim Stuart warned that this shortage could continue until the first quarter of 2021.

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Adam Bankhurst is an IGN news writer. You can follow him on Twitter @AdamBankhurst and on Twitch.