A report from AMD, one of the market leaders for memoryless semiconductors, predicts that the global semiconductor supply shortage will ease in the second half of next year.
On the 27th (local time) AMD CEO Lisa Su predicted that semiconductor supplies would increase at the Code Conference in Beverly Hills, California. “The first half of 2022 will probably be tight,” she predicted. “We’ve always had a situation where demand exceeds supply or vice versa. This time it’s different.”
After Covid-19 spread, electronics demand exploded and logistics stalled, leading to a severe supply shortage in the global semiconductor market. Manufacturing plants slated for last year will start production in the next few months, which will help ease PC component shortages and other semiconductor shortages.
“It could take 18 to 24 months to build a new factory, maybe even longer,” she said. “These investments probably started a year ago.”
In this regard, Jean-Marc Sheri, CEO of STMicroelectronics, a Swiss semiconductor company, said in an interview in July: “The supply situation will gradually improve in 2022, but we will have to wait until the first half of 2023 to return to normal.” He described the “normal state” as a situation in which semiconductor inventories remain at a moderate level, and lead times for replenishing parts in short supply take an average of three months.
AMD in a buy trend
According to Mercury Research, AMD’s share of the server processor market increased by 3.7 points to 9.5% in Q2. Intel held the rest of the market, but AMD gained ground. Vivek Arya, an analyst with Bank of America, predicts AMD’s server market share could reach 25% by next year.
AMD estimates that server processors will generate $19 billion in revenue by 2023. Nvidia’s Grace processors will arrive soon enough, but AMD has made strong inroads in the server processor segment before Nvidia’s Grace chips arrive.
In recent days, AMD has risen from its 50-day line, clearly breaking a trend line. While volume was below average, it was the highest in several weeks. It is expected that AMD will reach 114.59 as a double-bottom buy point.