Lisa Su reveals AMD is limiting supply to boost prices of CPUs and GPUs
Fortune Brainstorm TECH
With the shortage of semiconductors and demand for cryptocurrency mining beginning to settle down, the price of graphic boards, which had been soaring , is heading for normalization, and there is room in inventory, and bright news continues for consumers. On the other hand, the semiconductor industry is suffering from falling CPU and GPU prices, and in response to this, 'AMD is intentionally narrowing down the supply of chips,' said CEO Lisa Su.
AMD 'undershipping' chips to help prop prices up | PC Gamer
AMD is 'undershipping' chips to keep CPU, GPU prices elevated | PCWorld
Intel reported that in the fourth quarter of 2022 released on January 26, 2023, net profit fell 114% year-on-year and fell into the red. On the other hand, AMD also announced that the sales of the client PC division decreased by 51% from the same period last year, although the profit was secured in the financial report on January 31, and the industry as a whole is suffering.
Intel's sales in the fourth quarter of 2022 fell by 32% year-on-year, the data center and AI fields dropped significantly and the stock price fell by more than 9%-GIGAZINE
Under these circumstances, CEO Lisa Su said in a conference call with investors, “We have undershipped sell-through and consumption for the past two quarters. We will do an undership even if it is less than one quarter,' he said, revealing that he had narrowed down the supply. 'Undership' is a word that means that the shipment volume is insufficient.
AMD, which is struggling with the decline in sales, dares to reduce the shipment volume by reducing the number of products on the market and maintaining the price, so the number of sales due to sluggish mining demand, inflation, pandemic convergence, etc. It is pointed out that this is because it is responding to the slump in
PC gaming magazine PC Gamer said, 'You can't blame AMD for doing the right thing in staying profitable. To strike the right balance between supply and demand, the big chip makers are pushing this kind of inventory. Adopting management techniques is common, and in the long run, AMD's survival is essential to maintain competition and choice in the graphics board market. However, if NVIDIA, AMD's main rival, monopolizes the market, the situation will continue to deteriorate,' he said, understanding AMD's supply restrictions.
In fact, NVIDIA, which is competing with AMD in the GPU market, has a similar strategy. NVIDIA's Chief Executive Officer (CFO), Collette Kress, said at a technology conference held in November 2022, 'We are closely monitoring sales numbers every day, and we are undertaking the holiday season. The undership of gaming products is to correct the inventory in the distribution channel.”
Regarding future GPU price movements, PC Gamer said, ``I think the price of graphics cards, which has remained high despite a significant drop in demand, will gradually moderate over time. I also understand why the price does not return to 'normal' easily. It's a shame.'
in Hardware, Posted by log1l_ks