AMD expects shortage of PS5, Xbox and PC chips by the first half of 2021

Despite AMD’s 2020 record, it expects PS5, Xbox Series X / S and PC disk shortages to last at least into the first half of 2021. As reported by Tom’s Hardware, AMD recently held its Q4 2020 earnings call and AMD President and CEO Lisa Su discussed these deficits in response to an investor asking about the extent of the supply constraints due to growth and the COVID -19 pandemic.

While AMD has seen a strong revenue boost in its business, Su mentions that “overall demand exceeds our planning.” As a result, there were supply restrictions by the end of the year in the PC market, the low-end PC market and in the gambling market.

Su also discussed how this means she expects chip shortages in the first half of 2021 as AMD works to improve supply, but she assures that in the second half of 2021 there is ‘extra capacity’ that will hopefully help.

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“And so we see a bit of tightness during the first half of the year, but there’s extra capacity in the second half,” Su said. “And then, in terms of how we – how we think about these things, so we have good visibility on both the demand side and the supply side for our complete yearbook. And that was the basis for guidance across the enterprises.”

Su has previously spoken to Xbox CEO Phil Spencer as AMC manufactures the CPU and XUs of the Xbox Series X / S, and both teams are working as hard as they can to meet the huge demand of next-generation consoles . Last year, Microsoft chief financial officer Tim Stuart warned that these deficits could continue through the first quarter of 2021.

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Adam Bankhurst is a news writer for IGN. You can follow him on Twitter @AdamBankhurst and on Twitch.