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PS5 and Xbox Series X next gen consoles could face shortages until mid-2021

Sony's PS5 custom console APU manufactured by TSMC and AMD (Image Source: HardZone.es)
Sony's PS5 custom console APU manufactured by TSMC and AMD (Image Source: HardZone.es)
The demand for the next gen consoles from Sony and Microsoft is expected to greatly offset the supply, as the console APU yields are still not that great. This could lead to prolonged shortages that could last until mid-2021, despite AMD's increased allocation of wafers at TSMC.
Bogdan Solca, 🇩🇪
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Sony opened up pre-orders for the PS5 last week and the initial estimated stock dried up very fast. The situation will most likely be similar with the Xbox Series X pre-orders that have opened up today. Despite Sony’s and Microsoft’s efforts to ramp up production for the next gen consoles, it looks like the supply chains will still be overwhelmed and shortages are now expected to last until mid-2021.

Commercial Times notes that MediaTek’s 7 nm wafer allocations at TSMC were cancelled since most of the chips from that batch cannot be shipped to Huawei due to the bans. This situation allowed AMD to schedule production for an additional 13,000 7 nm wafers until December this year, and most of these chips are meant to be integrated in the next gen consoles.

To put things into perspective, 13,000 wafers would roughly translate to 1,352,000 console APUs. This is just a small fraction of the 102,000 wafers ordered by AMD for the next gen consoles in the second half of this year. Apparently, the console APU yield rates are around 58%, so almost half of the chips are discarded at present. This situation should see significant improvements towards the end of the year, but the estimated demand for the console APUs will still put tremendous pressure on the existing supply, leading to extended shortages that could last until mid-2021, when most phone makers will have shifted to 5 nm chips.

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Bogdan Solca
Bogdan Solca - Senior Tech Writer - 1540 articles published on Notebookcheck since 2017
I first stepped into the wondrous IT&C world when I was around seven years old. I was instantly fascinated by computerized graphics, whether they were from games or 3D applications like 3D Max. I'm also an avid reader of science fiction, an astrophysics aficionado, and a crypto geek. I started writing PC-related articles for Softpedia and a few blogs back in 2006. I joined the Notebookcheck team in the summer of 2017 and am currently a senior tech writer mostly covering processor, GPU, and laptop news.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 09 > PS5 and Xbox Series X next gen consoles could face shortages until mid-2021
Bogdan Solca, 2020-09-22 (Update: 2020-09-22)