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Analysis: AMD to outsource manufacturing?

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Posted June 20, 2007 by admin in News

AMD spokesman, Drew Prarie, responded to the claim saying that the company is trying to focus its efforts on developing chips instead of manufacturing them. Currently a great deal of AMD’s manufacturing is handled by Chartered Semiconductor along with access to IBM’s chip fabrication plant in East Fishkill, New York. Taiwanese fab TSMC also come into play manufacturing AMD’s new GPU’s.

Citigroup analyst, Glen Yeung believes that AMD is on the verge of making a “transformational move” such as outsourcing low-end processors to TSMC and possibly sell off part or all of their Dresden, Germany facility.

We’re looking to find ways to extend that model beyond research and development to the full range of the manufacturing supply chain, Prarie said Monday. That could run the range from increasing the amount of processors we send out for chartered manufacturing, and could also include things like establishing partnerships on the manufacturing side.

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