AMD increasing GPU production, Explains what’s behind Shortage

AMD GPU production

GPU pricing is something that is heavily affecting the tech industry right now, specifically the PC gaming market. Well, AMD do have a good news regarding GPU production, as well as explains what’s going on with the shortages that have caused this pandemic in prices.

AMD ramping up GPU production, But Memory a Limiting Factor

In a Q&A session during their recent Q4 2017 earnings call, CEO Lisa Su confirmed that the company is officially ramping up GPU production to meet the increasing high demand from gamers. She also explained that production isn’t limited by silicon, rather by an industry-wide DRAM shortage. Su was quoted saying:

“The GPU channel is lower than we would like it to be. So, we are ramping up production. At this point we’re not limited by Silicon per se, so our foundry partners are supplying us. There are shortages in memory and I think that is true across the board whether you’re talking about GDDR5 or talking about High Bandwidth Memory [HBM]. We continue to work through that with our memory partners and that will be certainly one of the key factors going into 2018.”

AMD GPU production and shortage in memory

So there’s a couple of things we can take from this. For one, AMD are upping production, but it seems they are only able to do so much thanks to the shortages in memory that industry has been dealing with for quite a while now.

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Basically, this whole thing has been the perfect storm. The past few months saw a massive demand for graphics cards from the likes of crypto miners and gamers. This was coupled by industry-wide shortages in memory that span from everything from GDDR5, G5X, to HBM, making GPUs incredibly hard to find, or up their value by an insane amount.

That said, it’s good to know that AMD is ramping up production as much as they can. Let’s hope it will be enough to lower prices to some extent so that gamers have a chance to buy a new GPU without putting a second mortgage on their house.

What do you think of the current situation of the GPU market? Are you just waiting for the cryptocurrency bubble to burst bringing prices to normal? Let us know your thoughts down in the comments section.