AMD GPU ramping up production to meet the demand of miners

AMD (Advanced Micro Devices) plans to increase production of graphics processors (GPU), the deficit of which is observed today on the market. The recently released processors with the cards RX Vega almost sold out, and the popularity of kriptomayning among investors and enthusiasts community continues to grow. The company’s revenues from the production of video in the last quarter of 2017 reached a billion dollars.

The demand for graphics processors

Growing interest in mining of crypto-currencies in the past year has prompted AMD to think about solving the problem of demand for components. Space the growth of bitcoin and other cryptocurrencies have attracted the business of mining new investors.

The action of buying the video card miners led the main competitor AMD, the company Nvidia, to «take action» to protect the interests of gamers. In particular, the company asked retailers to limit the number purchased at one time a graphics card. However, to imagine ways of implementing these recommendations is difficult. AMD noted a shortage of Radeon graphics cards and recognized that this deficit is created by the miners. Promising to increase production, the company hopes to meet the growing demand without causing dissatisfaction from customers.

«Channel for the production of graphic components is very small, and we are working to replenish the environment,» — said the head of the company Lisa su (Dr. Lisa Su). «Because at the moment the availability of the cards is lower than we would like, we are increasing production».

This statement demonstrates a drastic turnaround in the company’s strategy, since the fall of last year, Lisa su believed that in the 4th quarter of 2017, the demand for graphics processors from cryptocurrency miners will start to decrease.

During a recent conference call with investors, Lisa su presented the latest report on the company’s revenues, which mining is related to a significant part of the business of AMD. Revenue in the 4th quarter of 2017 amounted to 1.48 billion $ 958 million of which are derived from the production of graphics processors, the annual growth rate reached 60%. A key factor was the sale of the cards Vega Vega 56 and 64.

Shortage of memory

However, the ability of AMD to fulfill the promise to satisfy gamers and miners can be affected by other factors. Increasing production volumes, companies need to take into account the lack of memory for graphics cards. GDDR5 and HBM2 is of two main types of memory used in GPUs RX series 400 and 500 in the new series RX Vega — are in short supply. However, AMD says its investors and clients that they will solve this problem in collaboration with partners.

Retailers are also not sitting idly by. Some of them have already announced the intention to take action, not allowing the miners to buy large quantities of cards. Retailers want to maintain market share for gamers.

Another important factor is the fluctuation of demand for equipment for mining, which tend to reflect the UPS and downs of the cryptocurrency market, because the profitability of mining depends significantly on the rate of mined coins.

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