We have been warning it for months and it has finally ended up happening: the stock of AMD products is very limited, in almost all cases non-existent, which means that users cannot buy their Ryzen 5000 CPUs or their RX 6000 GPUs. As much as the company has done to alleviate supply problems and keep resellers out, it has not been successful, but we also today know why the stock is so low: AMD is prioritizing console chips a lot.
We assume as normal the fact that many people want the same product at the same time, that a great hype is generated by the console on duty or the rigorous GPU, but if there is no stock then frustration and doubts emerge. But, what if the lack of stock is given not only by the huge demand but by a very low supply? Well, this is what is happening now with AMD CPUs and GPUs.
AMD focuses on 7nm console SoCs and leaves its products with 20% allocation
The first thing we must understand and know is that TSMC in its 7 nm process has managed to increase production, but that due to the season we are in, the more than 150,000 wafers that it can produce each quarter are collapsed by AMD.
And it is that today it is known that Lisa Su’s are betting very strongly on consoles instead of their own products, which will undoubtedly raise blisters among their followers, but everything has an explanation. AMD reportedly has agreements with SONY and Microsoft for the sale of their custom chips for PS5 and Xbox Series X, to the point that the Reds have no less than 120,000 wafers reserved to satisfy these contracts.
Twice as many units for PS5 as for Xbox Series X
The figures disclosed are very much aimed at the sales that both companies expected, as we said less than a month ago. AMD, therefore, reserves 80,000 wafers for the PS5 SoC and 40,000 for the Xbox Series X and Series S SoC, hence this amounts to a whopping 80% of all TSMC 7nm stock for consoles only.
By sheer logic and math, this leaves us with only 20% for Ryzen and EPIC CPUs, as well as for the RX 6000 series that has been put on sale now, not forgetting the new CDNA-based GPUs of course.
We do not know how AMD manages its processors and graphics cards in volume, but what is certain is that knowing this there is no sign that the situation will improve, mainly because the capacity is what it is and because TSMC is not focused on its 7 nm, but in its 5 nm for Apple mainly, where AMD will arrive later in 2021 to reserve wafers.
Therefore, you have to be patient and wait for the stock to be replenished little by little. This may take longer than many thinks, since for example in the case of Intel, the stabilization of supply and demand took more than 6 months and Intel controls both the production and the allocation of its chips …