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AMD to stop making its own chips?

By crispin. Original by Lionel - 14/05/2008 09:21:56 CEST - Category: PC - Source: Digitimes
It isn't a secret for anybody; AMD is in a very bad shape and loses money quarter after quarter. Currently there is much talk about a major reorganization of the company which could be divided into several entities, separating the R&D division from the production.
AMD may have indeed decided to delegate part of the production of its products to TSMC, one of the two large make-to-order chipmakers. Such a step is underlines the crisis. AMD has many problems to produce chips in 45nm and should devote to it still more money, and we do not speak about the 32 nm.
However, TSMC, where manufacturing is the core activity, invests considerable sums to improve its manufacturing processes. On the short term, AMD could thus leave the red, especially as they benefit from by reselling some CPU manufacturing plants which they will no longer need.
It will be possibly always at some time in the future to restart their own manufacture of processors. But this is not certain, knowing that each new jump towards the quantum barrier is much more expensive than the precedent.
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