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AMD to outsource more CPU production to TSMC - report

Lightening the load

TAKING ANOTHER STEP towards perhaps becoming a fabless chip firm, AMD will apparently be outsourcing its CPU production to Taiwan Semiconductor Manufacturing Company (TSMC), by the second part of 2008.

The move was not discussed in AMD’s last investor conference, but Digitimes reports that industry sources claim that testing is already well underway down at TSMC for Silicon on Insulator (SOI) manufacturing. SOI production would be essential in order for TSMC to get a deal allowing it to manufacture AMD fusion CPUs.

TSMC already manufactures a significant majority of AMD chips, and this latest move could mean another step towards becoming "asset smart", whereby AMD would eventually become semi-fabless, saving vital cash currently spent on operating costs.

The problem with AMD outsourcing to TSMC is that its fabs lag about one and a half generations behind those of main AMD competitor, Intel, so although the move would cut costs, it is unlikely to provide AMD with much needed innovation or edge over its rival.

But after such a disastrous year for the chipmaker, the company is really trying to do all it can in order to become profitable again by mid 2009, as well as to attempt to recapture some 30 per cent of the global market share, which just might put the company back in the game. µ

See Also
AMD's asset-light hype boosts Chartered Semi

AMD's "asset-light" plans hotly anticipated

AMD's next CPU will be radical departure

Comments

1.5 generations behind?

>> TSMC .. lags about one and a half generations behind .. Intel

So basically TSMC will be releasing chips that compete with the Pentium 4 3ghz! Nice move AMD!
posted by : TravisO, 15 May 2008

Will be good for AMD

This is for TravisO, when the author refers that TSMC is half generation behinds Intel, he mean in the manufacturing process, not in the architecture level. Intel is currently doing 45nm processors, TSMC is currently doing 55nm GPU's and is currently experimenting with 45nm technology and AMD is doing 65nm process. So that's good for AMD, nice talk TravisO!!
posted by : UNiX, 15 May 2008

Fusion?

im not totally sure about any of this but...

will this help them with their fusion project? (cpu+gpu)
im sure i read somewhere that amd's manufacturing process does not work too well with gpu type processors
they could get TSMC to make a cpu with both gpu and cpu on a single die (dice whatever u want to call it) further down the track when they have that step of fusion finalised

i think this an essential step with the fusion project
posted by : huh, 16 May 2008

Locking IN.

This isn't so much fusion/fuzion project as its Extreme increase in SALES & Marketeers. Even as Large as AMD is, it has Definate Roots & Those Are Limited. Like All partnerships.

Both by Gulping into GOOD Zone of Nvidia Contractee(always PhysX Cutter) & Expanding Sales potential by Huge Factor, TSMC Gets Closer look At Crossfire & CrossfireX & possibility that Enormous new process will be guide to enormous bulk production.

AMD is continuing its three year invisible romance with TSMC. I do believe first three where Very productive. Yet its HARD to beat Time & Craftmanship of Inbteml al et..

Thats what it takes. Obviously with SSD Potential going to 800+ mb/sec & thereforecpu core speed, theres lot of migration from uninvented TOP End to mainstream Due to Hardware Reconfigurations, including massive core design itself.

More Massive & Complex, people will be getting Monies worth Finally, long after d r. Moore gone, So Slow, Yet So Nessessary.
drashek
posted by : Ultie_Fuzion, 16 May 2008
IThound
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