AMD's Epyc Zen6 chips face shortages as demand skyrockets beyond forecasts

AMD is struggling to keep up with soaring demand for its Epyc processors. The company's latest Zen6 "Venice" chips have seen orders far beyond initial forecasts, leaving supply chains stretched. CEO Lisa Su confirmed that meeting this unexpected surge will take time.

The rush for AMD's Epyc CPUs has caught the company off guard. Unlike past generations, where production kept pace, the Venice series faces immediate shortages. Data centres and enterprise customers are driving much of the demand, mirroring past challenges Intel encountered with its Xeon processors.

AMD has already locked in production capacity for its upcoming Instinct MI450 accelerators, HBM4 memory, and CoWoS packaging. These components will start rolling out in the third quarter of 2026, with a sharper increase expected by the final quarter. The company is also expanding its overall capacity to handle the CPU shortfall.

Industry analysts predict the high demand for processors will last well into 2027. AMD remains confident it can fulfil a significant portion of orders, though delays may persist in the short term.

AMD's efforts to scale up production come as both it and Intel grapple with unprecedented demand. The Venice processors and new accelerator technologies are set to play a key role in meeting long-term needs. Customers, particularly in data-heavy sectors, will likely see gradual improvements in supply over the coming quarters.