Industry experts have echoed similar expectations and there’s a wide consensus on the 2022 mark. Recently a lot of news has come out on increased investment from companies to build fabs. Unfortunately, most of it won’t help alleviate the ongoing crisis, as construction of a new fab takes upwards of two years. – AMD CEO Dr. Lisa Su (CNBC) AMD, unlike Intel, doesn’t own chip fabrication plants and outsource the production part to other fabs. This exposes the company to a greater risk arising from supply uncertainty. This is also a reason why AMD has put more focus on their premium segment products recently, like the Ryzen series processors and onwards. Margins on low-end products are thin, and with increased production costs, it becomes more difficult to price them competitively. The more expensive products can absorb these increased production costs to an extent and are also more profitable on a per-unit basis. – AMD CEO Dr. Lisa Su (PCMag) This is also not the first time the industry is facing such supply issues, but this has lasted the longest and it looks like it is here to stay at least until the end of next year. Previous shortages have been attributed to mining booms and factory fires, but this time these issues affect a wider range of industries like Automobiles, and are driven by a host of complex factors.
