AMD CEO Lisa Su stated on Monday that the worldwide chip shortage will become less acute in the second half of 2022, though she cautioned that the first half of the year will be "certainly tight."

Following severe supply chain constraints caused by the epidemic, chipmakers are still struggling to keep up with consumer demand. Manufacturers who had intended to start chip production in the previous year will most certainly begin doing so in the coming months, Su added, helping to alleviate the shortages of PC parts and other microchips that have been occurring recently.

“We’ve always gone through cycles of ups and downs, where demand has exceeded supply, or vice versa,” Su said at the Code Conference in Beverly Hills, California. “This time, it’s different.”

The improvements will be gradual as more manufacturing capacity becomes available, Su said.

“It might take, you know, 18 to 24 months to put on a new plant, and in some cases even longer than that,” she said. “These investments were started perhaps a year ago.”

AMD primarily sells processors and graphics chips for PCs, gaming consoles, and servers.

Lisa Su, AMD CEO, said the chip scarcity is likely to end next year.