Tuesday, May 13th 2008
AMD Planning to Outsource CPU Production to TSMC
Advanced Micro Devices (AMD) might be planning to outsource some of its CPU production to TSMC (Taiwan Semiconductor Manufacturing Company) in the second half of the this year it was reported today. This move will help AMD to clear some of its manufacturing equipment and help lower the company's operating costs.
Source:
DigiTimes
Although Hector Ruiz, CEO of AMD did not mention any plans to outsource production during the company's recent investors conference, the industry sources revealed that TSMC has already started testing procedures for a SOI manufacturing process in order to land manufacturing orders for AMD's Fusion CPUs. The increase in outsourcing could allow AMD to sell off some of its manufacturing equipment and help lower the company's operating costs, noted sources at AMD's partners. AMD's current goals are to return to profitability in the first half of 2009 and to grab back a 30% worldwide market share by the second quarter in 2009, noted the sources.
30 Comments on AMD Planning to Outsource CPU Production to TSMC
Yeah right! :laugh:
fact is that amd isnt going broke, im sure you really wish they where and that they would just die, but guess what, they wont, because amd has been in worse situations in the past and didnt die from it, if theres one thing you can say about amd, its a survivor.
now as to the story, im pretty sure this dosnt mean they are closing their own fabs or selling them, they are likely gearing up to bring GPU production or at least PART of the gpu production IN HOUSE, also this move will allow amd to move to 45nm or whatever on their fabs that they havent yet transissioned to 45nm.
look at the past, this isnt the first time amd has outsorced cpu production, and ati alwase outsorced it, i know amd's plan eventuly is to get everything they can in house, most likely having these new cpu's made by tsmc is cheaper then having more complex gpus made by them(i would assume that tsmc charges based on die size and complexity not just per wafer/chip)
also i would bet you amd has a good number of orders from OEM's for their new chips already, as well as the fact that sales of b3 chips to users and OEM's are pretty good dispite what intel zelots will contend, 2 local parts sellers here told me that they cant keep the b3's in stock for more then a few days, these arent small parts sellers mind you, but the 2 largist system builder supplyers in the area.....
things are from my prespective looking up, not everybody cares what their superPI times are, they just want a system that will do the job at a reasonable price, and 99.9999999999999999999999999999999999999999^infinity% of computer users DONT OVERCLOCK, so it DOSNT MATTER WHO OVERCLOCKS BETTER.
personaly most users i deal with are eather totaly ignorant of what overclocking is, OR they think it will cause your computer to explode into a ball of fire thanks to those old intel adds against overclocking, wish i still had them, they would make a lulzy post, computers that somebody stuck in an oven to make the front melt, just so they coul imply that it was caused by overclocking HAHA.
well, to get back on topic, i think its a good move, i wonder if cray will be making an order for fussion chips ;)
There's another fab in Singapore though reports suggest it's down and is undergoing upgrades to produce 45nm parts.
If they outsource production to TSMC, both chip fabrication and assembly would take place in the same facility. The way things are now, you have wafers from Dresden flying to either China or Malaysia where they're assembled into a PGA/LGA package. With this outsource, AMD goes fab-less, like NVidia. It's not that AMD isn't able to meet a market demand with its current fabs that they've decided to outsource production, but that they're going broke and not able to run fabs, not to forget escalating salaries in the EU.
i see they are selling equipment, but no mention of selling the fabs themselves, or of closing them down.
and amd has a fab in texas last i checked
www.youtube.com/watch?v=LpK6zPZMYsg
Again, this outsource can be a temporary thing, because the Singapore fab is undergoing upgrades, maybe the Dresden fab will undergo upgrades while TSMC plays babysitter.
Says Wikipedia: Check your processor's box, it says "diffused in Germany or Singapore, assembled in China or Malaysia" which means it's fabbed in Dresden or Singapore, assembled in China/Malaysia.
your still thinking/talking like the only thing amd makes/sells are cpu's, thats not been true since i can remmber, back in the day amd made controler chips for addin cards, as well as eletronic devices, i had a vhs player that had an AMD chip in it......
amd's CPU venture isnt fairing well in the RETAIL market, but they are still selling well to oem's and server makers dispite the tlb bug crap(mostly because the servers they where used in could be kernal patched to fix the bug with little perf hit compared to the bios and windows fixes.
yeah, amd's not the star they where when the athlon/athlonxp where kicking intel around, but they arent in as dier staits as many alarmists would have you think, i know people who work for amd, and yes some people have been layed off, but intels been quietly laying off people around here, OR laying them off from one job/venture and hireing them at another(basickly a transfer), i have personal friends who work for intel( hell i can drive to one of intels portland offices in like 10min or less baring traffic problems.)
and im not saying amd isnt hurting from the loss of sales, BUT they arent hurting as bad as you and others imply/belive, amd has been in this possition in the past, they operated at a lost on the cpu side for years.
oh and b4 you say "they never should have bought ati, if they hadnt spent all the $ on buying ati maby they could have payed to develop a decent chip" amd knew what they where doing and EXPECTED TO TAKE A LOSS/HIT from it, they KNEW that they would be in the red for a while due to buying amd, BUT they also got more contracts from OEM's because they now have THEIR OWN CHIPSETS AGAIN, and oems prefer to buy a bundle deal, chipset/cpu/exct from the same company, hence most OEM intel machiens use INTEL CHIPSETS or even boards made by intel.
i see amd thinking like the japnese, see unlike americans and western cultures where we want the big win/giant advancement every time something comes out and as offten as possable, the japnese dont look at "how much can we make today/this week" they look at "how much can we make in the next 5 years" and "will doing this have advanteges down the road"
western cultures, and yes from my experiance with indians they have been VERY westernized, tend to want the big win every time, they dont have the vission to look 1-2-3-4-5-10 years down the road, hence alot of the problems we have in this world.
the japnese kick our western asses in eletronics for this very reasion, insted of alwase going for the quintum leap they just do a shit load of small enhancments refining and advancing their designs as they sell stuff based on these enhancments, also by doing small enhancments more often insted of large upgrades in leaps it keeps cost down.
very diffrent culture and mind set from what you find in the us and other westernized cultures.
and i still want proof of your statements, links showing them closing fabs or selling them, credible proof that your not just "taking out your ass"
also i remmber reading that amd wanted to build a fab in newyork for 45nm production.....im sure that was before the crunch tho, so it probbly never got built.....
I'll use reverse psychology, ask you, give me proof that AMD will fab processors in Dresden/Singapore while also letting TSMC manufacture. The most logical explanation I already gave, that TSMC will fab AMD processors while Dresden FAB36 upgrades for manufacturing 45nm parts. To upgrade, you need money, and that money comes from the AMD processors you let TSMC manufacture, since TSMC already has facilities for 45nm fabrication and that it announced it's accepting designs from companies.
im not trying to attack you, but your assertion that amd is gonna close fabs and go fabless has no backing, i have looked, i also have asked, really amd has ALOT going on, gpu, cpu, chipset as well as chips for aplications other then the PC market, no point in argueing with you tho, at least from what have read of your posts you only have bad things to say about amd/ati, duno why you post in amd/ati threds, other then to tell everybody they suck and are dieing so u can then argue with them :)
B. I said, they might not run their fabs simultaneous to letting TSMC manufacture.
C. Also that this could just be temporary, because their fabs are undergoing upgrades and they could let TSMC manufacture meanwhile.
AMD isn't failing, it still holds on to a niche market and that they would want to upgrade their fabs to 45nm to compete with Intel better, meanwhile, it could cut manufacturing costs by outsourcing manufacturing to TSMC.
Sorce dosnt sound like amds selling off their fabs or closing them down to me.........Sorce
EDIT: well your post come off as saying that, at least thats how i read them.... so hard to tell tone and intent over the net.....
meh, the quotes still stand.
as to niche market, its more then a niche imho, they arent on even footing with intel, just as no other software makers in even footing with microsoft, but that dosnt mean they dont have their own share of the market, niche to me means they only have a very small slect user base, like the true user base of a 1gb 8400/8500/3450/exct card, for CAD users its acctualy a good card, but for the rest of us.....its crap.......thats a true niche market.......
edit 2: forgot to add, if you want to see a true niche market company, look at sun microsystems, their cpu's and os are a VERY niche market based product :)