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Amd chip supply

AMD’s 7nm Ryzen CPU and Radeon Navi GPU may encounter some serious obstacles on the way to customers.

According to industry rumors, TSMC, the semiconductor foundry responsible for providing 7nm nodes on AMD chips, is striving to produce enough products to meet the needs of the PC and mobile fields, especially 5G technology. In an unprecedented move, it is the first to extend the production time from two months to six months.

The company has reached the production capacity of the 7nm node because the technology has become the core pillar of many new components and is in high demand by some major players in the technology industry such as Apple and AMD. Companies that use the manufacturer’s services must now place order requests in consideration of the new delivery time to reduce additional delivery time.

It's hard to say what impact this will have on AMD, but for customers, the impact shouldn't be that bad. This tech giant is one of TSMC's best-known clients, and we believe there are some very strict temporary contracts that are suitable for this situation. In addition, TSMC has expanded its production capacity by an additional 5,000 units per month, which will help meet demand to some extent.

Risk is how limited production capacity will affect node supply development. AMD is about to start producing 7nm-based products, such as the Ryzen Threadripper series, EPYC chips, and Ryzen mobile versions, which means increased demand. With the arrival of Zen 3 and RDNA 2 chips, looking forward to the future, it remains to be seen how TSMC will handle the shift to production beyond 7nm.

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