AMD CEO Lisa Su said during the Code Conference In California that chip shortages will most likely continue at least until next year. Given the fact that Xbox Series consoles and PS5 both use AMD chips in their systems, the global shortage has a direct impact on the production, making getting them a tough ordeal.
As reported by CNBC, Su explains that it takes anywhere from 18 to 24 months to set up manufacturing plants in an effort to meet the ever-increasing demand for the chips. The point at which these developments would bear fruit should be around the second half of 2022, following which these shortages should ease down. This sentiment was also echoed by head of Xbox Phil Spencer a week ago.
“We’ve always gone through cycles of ups and downs, where demand has exceeded supply, or vice versa,” Su said. “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. These investments were started perhaps a year ago.”
The COVID-19 pandemic inevitably caused a lot of problems for manufacturing chains all around the globe, which also includes Sony’s and Microsoft’s latest machines. Despite releasing at an inopportune time with software that was late to the party, both machines are boasting impressive sales figures – particularly Sony’s PS5.