AMD balances the supply and demand of CPU and GPU through "undershipping"

CTOnews.com February 2 news, with the PC industry in trouble, Intel's sales performance last quarter is very ugly, so will take pay cuts and other related measures. Revenue from AMD's PC business also fell 51%, so why didn't AMD cut the prices of CPU and GPU?

Su Zifeng, CEO of AMD, said on a conference call with investors on Tuesday night that he had been balancing market demand and supply capacity through "undershipping" chips for some time.

For the interpretation of the word "undershipping", foreign science and technology media PCWorld interprets it as "keep prices up" (keep prices rising). AMD balances demand by reducing supply and keeps prices of CPU and GPU high, according to the subtitle.

CTOnews.com learned that Su Zifeng said: "We have been selling and consuming undershipping in the past two quarters. We were both undershipped in the third and fourth quarters of last year. We will continue to maintain the undership approach in the first quarter of this year, but to a lesser extent."