We assume as normal that a lot of people want the same product at the same time, that a lot of hype is generated by the current console or the rigorous GPU, but if there is no stock, frustrations and doubts emerge. But what if the shortage of stock is caused not only by the huge demand, but by a very small supply? Well that’s what’s happening with AMD processors and GPUs now.
AMD Focuses On 7nm Console SoCs, Leaves Products With 20% Allocation
The first thing we need to understand and know is that TSMC in its 7nm process has managed to increase production, but this due to the season we are in a bit more than 150,000 wafers that can produce each quarter are reduced by AMD.
And it is that today we know that Lisa Su bets very strongly on consoles instead of their own products, which will undoubtedly cause blisters among their followers, but everything has an explanation. AMD has reportedly made deals with SONY and Microsoft to sell their custom chips for PS5 and Xbox Series X, to the point where the Reds have nothing less than 120,000 wafers
Twice as many units for PS5 as for Xbox Series X.
The published figures are very much oriented towards the sales expected by the two companies, as we said less than a month ago. AMD therefore reserves 80,000 wafers for the PS5 SoC and 40,000 for Xbox Series X and Series S SoCs, this represents 80% of all TSMC 7nm stock for consoles only.
Logically and mathematically, that leaves us with just 20% for the Ryzen and EPIC processors, as well as the RX 6000 series which has been on sale now, not to mention of course the new CDNA-based GPUs.
It is not known how AMD handles its processors and graphics cards in volume, but what is certain is that knowing this nothing indicates that the situation will improve, mainly because the capacity is what it is and that TSMC is not focused on its 7nm, but its 5nm for Apple mainly, where AMD will arrive later in 2021 to reserve wafers.
We must therefore be patient and wait for the stock to rebuild gradually. This may take longer than many realize, because for example in the case of Intel, stabilizing supply and demand took longer. 6 months and Intel controls both production and allocation of its chips …