AMD Overcame Chip Shortage By Predicting Demand In Advance

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AMD CTO Mark Papermaster revealed that the company was able to overcome the global chip shortage by preparing ahead of time and predicting demand years in advance.

At a Web Summit conference, he made it clear, “Our supply chain team has worked to make sure that we have months and years of forecast ahead in our supply chain. Everybody has had to increase their focus on the supply chain but we did so from the very beginning of the pandemic. 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.”

Unlike its competitors in this field, AMD does not manufacture its own chips, such as Intel, as it depends on TSMC and GlobalFoundries to manufacture the chips.

Unlike car companies, however, the focus on smaller and more advanced chips reduces the impact of the chip shortage. Its focus on high-margin chips also enables the company to increase its forecast sales by 65% in 2021.

For more information, read the original story in Reuters.

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