AMDSu Zifeng, chief executive, said on Monday that the severity of the global chip shortage would ease in the second half of 2022, although she warned that supplies could still be tight in the first half of next year.

Chipmakers are still catching up with demand after the outbreak caused serious bottlenecks in the supply chain. But Su Zifeng said the manufacturing plant planned last year could start producing chips in the coming months, helping to ease the shortage of PC components and other microchips.

"We always go through a cycle of ups and downs, where demand exceeds supply and vice versa," Su Zifeng said at a conference. But this time is different. "

As more production capacity becomes available, the situation will gradually improve, she said.

"it can take 18 to 24 months to open a new factory, and in some cases even longer," she said. These investments started about a year ago. "

AMD mainly sells processors and graphics cards for personal computers, game consoles and servers. Since the COVID-19 pandemic began in 2020, PC sales have soared as consumers around the world buy new computers for their children at home so that their children can go to school remotely.

Su Zifeng said: "the epidemic has raised demand to a new level."

Last year, AMD announced plans to buy Xilinx for $35 billion, but the company has not yet received all the approvals needed to complete the acquisition. Su Zifeng said on Monday that AMD still believes the deal will be completed by the end of the year.

She added that there could be more deals in the semiconductor industry.

Su Zifeng said: "Integration is inevitable. Startups can do really cool things. I have great respect for these entrepreneurs. But if you want to do something very big in this industry, you know, scale is very important. "