Amd ryzen 3000, initial stock problem was not tsmc's fault

When AMD launched its third-generation Ryzen product line (Ryzen 3000), demand outstripped supply, so much so that high-end models like the Ryzen 9 3900X sold out at many retailers and price inflation occurred in others.

AMD did not expect such demand for Ryzen 3000 at launch

Given AMD's supply issues, several rumors emerged about the cause of the Zen 2 shortage. These rumors blamed TSMC for its inability to produce enough chips, AMD for focusing its resources on higher margin EPYC processors, and AMD management for relying on TSMC's relatively new 7nm manufacturing process.

For starters, AMD is not TSMC's largest 7nm client. TSMC has tons of 7nm capacity, and 7nm acts as TSMC's fastest node ramp to date, making the allegations directed at TSMC unwarranted.

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In a recent interview, AMD CTO Mark Papermaster confirmed that Ryzen's first third-generation supply problems "were not a TSMC problem, " stating that demand exceeded what AMD had expected and planned.

In summary, AMD did not order enough chips to meet initial demand for its Zen 2 processors. So AMD was unable to keep its processors in stock. Now, AMD's Ryzen supply problems seem to have come to an end. Presumably, this is due to AMD's large wafer orders following the initial success of Zen 2. If TSMC couldn't supply enough chips, there would continue to be a shortage of third-generation Ryzen processors. AMD's Zen 2 launch shortage was due to AMD underestimating demand. This is how they explain it.

To move forward, AMD needs to improve demand forecasting for its processors, as early Zen 2 (3rd Generation Ryzen) supply problems led to many lost sales and negative brand perception. Hopefully AMD won't make the same mistake with its fourth generation, as supply problems are always bad for consumers. We will keep you informed.

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