Saturday, February 23rd 2008
AMD Considering Outsourcing Chip Manufacturing
The title says it all. Chinese magazine Bloomberg recently discovered plans of AMD to outsource chip manufacturing. Most likely, this move would be done to reduce capital expenditure. AMD has already been testing outsourcing with IBM, and is now ready to go all the way. This is all part of a strategy Hector Ruiz likes to call "asset light". Nobody on earth other than Ruiz seems to know what, exactly, asset light is, and Ruiz refuses to elaborate upon it at this point.
Source:
The Inquirer
25 Comments on AMD Considering Outsourcing Chip Manufacturing
Doesn't AMD already have several fab partners that are working on Barcelona production? It's actually good that they outsource the manufacturing. A lot of companies (incl. NVidia) are fab-less and have come up in a big way, Nothing wrong for AMD, especially they save on possible expenditure each time they make a fab-shrink. The two companies, Intel and AMD are making it an annual affair, of shrinking the fabrication process of their chips.
Asides, though, I'm glad to see AMD outsourcing as a means of keeping their resources up - but hopefully, though, they won't outsource to somewhere that could potentially hurt them in the long run with higher RMA and device failure rates *cough*taiwan*cough*
:respect: AMD/ATI
Anyway, OT, I think it's a really good idea for AMD to do this, they need to drastically reduce their outgoings so they can pour all that money back into R&D.
I read it somewhere that AMD in first place doesn't wanted to By ATI they wanted to merger with Nvidia!
That was before the Core2 era of CPUs so they had the money (and they don't needed so much of it either because they wanted to merger not to buy out Nvidia) and The two company's merger failed because Hector and Nvidia CEO Jen-Hsun Huang couldn't settle who stayed in charge after the merger!
So if Ruiz wasn't so power hungry we would have big differences in strength out there!
If I have a the source of this inf I will link it!
:pimp:
this is good news. Companies outsource all the time. If AMD Maintains their fabs and has others helping them, they can get more chips out there, and also have more for R&D
this would help them out in so many ways! mainly they would have more time and money for r&d
nowhere did i see them say they where selling their fabs, maby i missed it, i only skimed the artical.
google is wonderfull thing
www.techspot.com/news/25816-AMD-denies-rumors-of-selling-fab-plants.html
news.softpedia.com/news/AMD-Denies-Selling-its-Fabs-57990.shtml
think what this is leading to is amd not building any more fabs and maby moving the gpu production in house insted of outsorcing it, that would probbly speed up dev and testing of new designs i would think :)
i love it