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AMD CEO Lisa Su said the first half of 2022 would still be difficult, but nothing serious in the second half.
Due to the COVID-19 pandemic, the global semiconductor shortage is taking a serious blow to the production of electronic devices such as automobiles, home appliances, game consoles, and smartphones. There have been reports that the global semiconductor shortage has been unstable since the beginning of 2021, but it has worsened since then, and in August 2021, it was reported that the lead time from semiconductor order to delivery reached 26.5 weeks, which is three to four times longer than usual.
In this situation, CEO Lisa Su predicted that the semiconductor shortage will begin to be resolved in the second half of 2022 at Code Conference 2021, a technology system conference held in Beverly Hills, California on September 27 (local time).
CEO Lisa Su insists that multiple semiconductor factories, which were decided to be built during the 2020 epidemic, will start operating by the second half of 2022. He said that investment in the semiconductor plant began in 2020, and that the new semiconductor plant would probably take 18 to 24 months or longer in some cases. It is expected that the global semiconductor shortage will be gradually resolved through the improvement of semiconductor production capacity following the operation of the plant.
This shortage of semiconductors is not only due to a decrease in supply, but also an increase in demand for PCs and game consoles due to the demand for curfew due to the epidemic. In response to this demand-side issue, CEO Lisa Su said that the COVID-19 pandemic has raised demand for semiconductors to a new level and supports the U.S. Creating Helpful Incentives to Produce Semiconductors, which invests $52 billion in domestic semiconductor manufacturing.
Meanwhile, according to the report, the semiconductor industry is reporting claims that demand during the Corona 19 period is temporary and that it will subside after overheating, pointing out that it is difficult to predict semiconductor-related demand and supply trends. As CEO Lisa Su said, the supply of semiconductors is definitely expected to increase, but demand for semiconductors will be stagnant now by the time semiconductor supply stabilizes, as demand for graphics cards has decreased due to China’s complete outlaw of crypto asset trading.
A series of semiconductor shortages have prompted the auto industry to cut production in 2021 and Germany’s Opel announced it would close one new plant and lay off 1,300 workers. According to reports, some automakers are also considering production plans in 2022. Related information can be found here.
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