- Saturday, 28 November 2009
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The afternoon knows what the morning never suspected - Swedish proverb
AMD denies trying to flog off fab 38
A SITE NAMED Tech Trader Daily posted statements made by investment bank Jefferies & Co.’s John Lau, stating DAAMIT is back at the negotiating table with TSMC, to sell none other than Saxony’s “crown jewel” Fab 38.
This time the suggestion is that Germany’s Federal authorities aren’t breathing down their neck over the €361 million the latest Fab upgrade cost the EU.
Creating DAAMIT cost AMD an arm and a leg – or $5.4 billion in real money and you know… money, it’s hard to come by.
To get some perspective (and if you are seriously deranged), read chimpzilla’s SEC filing. It’s dotted with the “ifs” and “buts” of the ATI acquisition, and, man, there are a lot of them. You needn’t be a financial analyst to understand a lot was playing on it, and that AMD isn’t expecting return on that investment anytime soon.
Add to that the fact that Intel is on a roll and you get an underperforming DAAMIT. With stocks trading at almost half the value of Dec’06, it’s time to take a deep breath and tighten the belt a couple of more notches, innit?
Taiwan SemiConductor Manufacturing Company (TSMC) has repeatedly been pointed-out to be DAAMIT’s choice foundry in manufacturing its future Fusion processors at 45nm process (which, by the way, has achieved chipdom status in the form of a Qualcomm 3G chip this week) as well as some of its current GPUs. This being the case, the affair between DAAMIT and TSMC could be a matter of quid pro quo.
So, is DAAMIT going the way of the fab-less? We’ve seen others do that, to varying degrees of success (NVIDIA/VIA, anyone?), and the option does seem temp ting, allowing AMD to focus on R&D + Marketing rather than the manufacturing part.
However AMD has gotten back to us on this stating that it is sticking to their master plan: Fab 38 will remain an AMD facility, currently operating in a supporting role to its neighbour Fab 36. In 2009 this role will change, with the Fab’s “emancipation”. Since 2008 will be the year for 45nm, Fab 38 can provide support to Fab 36 in both 65nm and 45nm.
So there. µ
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No. According to their x86 licensing agreement with Intel they're not allowed to sell x86 chips if they don't produce a certain percentage of them.
Each Building Developed something, perhaps market is unique & needs refresh, thus smaller nm capacity needed.

Skipping design phase or taking it in? Seems its deal only those inside clock would know about, I sure wouldn't give up my license till market goes dead. Whole business relys so much upon interreliabilities & agreed code that x86 is long life to go, FUNNY INTEL would be licenser.? Why wouldn't other O/s mfg Licenses be prevelent in market, is their Linux license from INTEL or Anyone?? maybe code is differnt that cpu, so via & other are also INTEL, yet thay are small, nvidia is fabless & intel? bound.so if via was fabless it would use license of FAB, like nvidia must. So AMD would use TSCM License for 38?My own company: thomas stewart computer manufacturing!

Often in area of deep Losses, second company is used in marketing of product that is not long term.So Main Company Staff stay happier about total market & THEIR Product.

thomas von drashek
"and that AMD isn’t expecting return on that investment anytime soon."
Why not? The new GPU and chipset division (formerly ATI) brings some nice profits.
Becouse from what I know Intel has lower yields than AMD, so I presume that is the reason why Intaniums go to new process looong long time after x86 CPUs.
So Intel please buy FAB 38 and release 45nm Intaniums before end of 2008.