Tuesday, November 27th 2007

AMD, TSMC Foundry Rumors Heat Up

Moving towards a fab-lite strategy, Advanced Micro Devices Inc. (AMD) is working on a long-awaited foundry deal with Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), according to a report from Barron's. The report cites two investment banking firms as its source, including Caris & Co. and Lehman Brothers. According to the report, AMD could have some of its processors made on a foundry basis by TSMC "as soon as the 2008 first half". At present, AMD makes the bulk of its processors in house, but also has a foundry alliance with Chartered Semiconductor Manufacturing Pte. Ltd. of Singapore. The move is geared to cut costs and offset ongoing losses. AMD is also said to be holding discussions about selling its new Fab 38 plant in Germany to TSMC.Source: EETimes
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2 Comments on AMD, TSMC Foundry Rumors Heat Up

#1
WarEagleAU
Bird of Prey
Would make financial sense to go this route. Offload some of the costs of making chips, changing lines, qa and such. Also, if they sell their FAB 38 to TSMC, thats even more money in their pockets and another place to produce chips. Seems like AMD is working towards the right environment.
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#2
Mandown
This could really help AMD in controlling more of the CPU market. More money, better R&D.:)
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