Bitcoin, Cryptocurrency And Blockchain News

AMD to Increase GPU Production Due to Growing Demand From Crypto Miners


Due to the rising demand for graphics cards, AMD says that it will increase its output. In fact, their latest RX Vega GPUs have disappeared from shelves globally. This is due to the growing demand from crypto miners. In the last quarter of 2017, the revenue from its Graphics Division soared to almost a billion. Consequently, the company has put in place measures to meet demand from both gamers and miners.

There Is a Demand for More GPU Power

The rising interest in cryptocurrency mining in 2017 has forced companies such as AMD to address the demand for hardware. This demand has been further bolstered by the rising prices of digital currencies such as Bitcoin. More enthusiasts and investors are joining the mining frenzy to make money. GPUs are needed to mine coins such as Monero, Ethereum, and others, which need more processing power than can be provided by an ordinary computer processor.

This mining craze has forced Nvidia, the biggest competitor to AMD, to take measures to ensure that gamers can access the graphics cards. It now requires retailers to limit the number of graphics cards that a single person can purchase at any time. AMD has also admitted that its Radeon cards were in short supply due to demand from miners. The company has promised to increase its production of the card to meet demands from all its customers.

The CEO of AMD, Lisa Su, said

The graphics channel is very low, and we are certainly working to replenish that environment.

She added that the supply of these cards was lower than they wanted it to be.

The announcement represents a sharp turn for the company. Last fall, she predicted that demand from miners would level off in the fourth quarter. However, that has not happened. During a recent investors’ conference, she said that digital currency mining continues to be a large part of their business. In the fourth quarter of 2017, the company announced revenue of $1.48 billion. Out of that, $958 billion came from its Graphics Division. The division has seen a year on year increase of 60%. The major contributing factor was the sale of graphics cards such as Vega 56 and Vega 64.

RAM Shortage

However, other key players may influence its ability to fulfill its promises. While increasing production, the company also needs to take into account the existing RAM shortages. The HBM2 and GDDR5, which are the two main types of RAM used on its graphics cards, are in short supply. The company assured its customers and investors that it was working with its partners to overcome this shortfall.

Retailers have said that they intend to put in place measures to limit the number of graphics cards that miners can purchase. They want to ensure that gamers have access to the cards too.

Do you think the demand for digital currency mining hardware will continue growing in 2018? Leave us your thoughts in the comments section below.