AMD CEO promises to “substantially increase” chip supply in 2027, but this is not good news for the price of laptops or consoles
- AMD CEO said the company plans to ‘substantially increase’ its chip supply in 2027
- Unfortunately, these are chips for artificial intelligence and data center use, not consumer products.
- If anything, this is bad news for Radeon GPUs and Ryzen CPUs as AMD underlines its commitment to the AI sphere.
AMD’s CEO has assured us that the company will increase chip production in 2027, but while that may seem great at first glance, it is not good news for consumers.
That’s because CEO Lisa Su was talking about making chips for AI use in data centers, not consumer processors or graphics cards.
Yahoo Finance reports that AMD has been expanding its AI chip production, and Su said, “We’ve been able to increase our supply as we move through 2026, and we’re going to substantially increase our supply in 2027.”
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This was a comment made to the press during a visit to Taiwan, and the CEO made it clear that part of the reason for her trip – which included a visit to Foxconn and TSMC – was to ensure that AMD’s production supply of CPUs and GPUs could be increased to meet increased demand for AI.
The next stop on the CEO’s trip is South Korea, where Su will look to bolster memory chip supply and meet with Samsung and SK Hynix.
On the broader topic of how AI is impacting us all, Su said it could be “incredibly good for the world” while also warning of the risks and need to cooperate on the security of this technology.
Analysis: consumers in the cold
There’s no mention of consumer products here (Radeon GPUs and Ryzen CPUs), and the fact that AMD is clearly focused on beefing up AI supply is bad news for the typical PC owner. If anything, it could mean that next year will be an even tougher time for chip supply for consumer products, especially given all the negative rumors there have been lately about memory chip supply in particular, which looks set to get considerably worse next year.
Of course, none of this is surprising: there are a lot more profits to be made in AI accelerators (graphics cards), of course, and as a business, Team Red can hardly afford to ignore that. But it does underline AMD’s commitments, and PC owners on Reddit have expressed their displeasure in no uncertain terms.
As one Redditor put it: “Yes, I have a feeling that the consumer market will end up being ‘whatever data centers consider obsolete’ soon. We may soon have to deal with buying used CPUs and GPUs for data centers.”
Well, that’s going a little far. And yes, others are quick to note that you can’t just stick an old data center GPU into a PC and run it; There are issues around implementation and cooling, display output (which isn’t necessary for a data center card), and the fact that many of these AI GPUs simply can’t run games at all. But the point remains: consumers are indeed bearing the brunt due to the rise of AI, and that has been the case since the invention of companies like ChatGPT and other LLMs.
It doesn’t look like the situation will improve next year, and that’s just another worry to add to the huge pile of memory price concerns that have been steadily growing as this year progresses.
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