Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Manufacturing/Packaging

AMD, TSMC seal foundry deal: report

Posted: 11 Jul 2007     Print Version  Bookmark and Share

Keywords:AMD-TSMC foundry deal  microprocessor market  IC-manufacturing 

Despite loses and the declining market shares, Advanced Micro Devices Inc. and Taiwan Semiconductor Manufacturing Co. Ltd have entered into a major foundry deal in the microprocessor sector, suggest reports.

In a research note, FBR said that TSMC may boost its capital spending after "winning high-end CPU biz from AMD." Under the plan, TSMC would make 45nm processors on a foundry basis for AMD, with "volume ramp in Q2 '08," according to the firm.

This would represent a change in foundry direction for AMD, which is losing money and share to rival Intel Corp. AMD is part of IBM Corp.'s technology alliance, a group of companies that is co-developing IC-manufacturing technologies. AMD is also outsourcing limited chip production to one member of the group: Singapore's Chartered Semiconductor Manufacturing Pte Ltd.

AMD is looking to boost its chip outsourcing programmes after cutting its capital spending. It could end up working with both TSMC and IBM's technology alliance on the processor front. TSMC also makes graphic processors for ATI Technologies, part of AMD.

Mere speculations
"The FBR report is one of many financial analyst reports that speculates on changes to AMD operations. And, like the other reports I've read, its unfounded speculation," according to a spokeswoman for AMD.

"AMD maintains strong foundry relationships with Chartered for MPU production and TSMC for GPU and chipset production," she added. "AMD's engagement with these foundry partners is unchanged. Chartered will continue producing AMD x86 microprocessors, augmenting AMD fab operations in Dresden with flexible capacity."

TSMC will continue producing AMD's leading-edge graphics and chipset products and there have been no changes to the relationship, according to AMD.

Still, TSMC's overall capital spending is expected to jump 10-to-15 per cent in 2008, according to FRB.

TSMC boost
In its overall business, TSMC appears to be on a roll. "Final tally indicate that Q2 wafer shipment increased by 17-20 per cent q-o-q, exceeding prior expectations of up 15-17," according to the report.

"The upside was driven by the consumer and communication, and new customers in base-band; on aggregate, communication was the strongest end market in Q2," according to the firm. "The only area of weakness was from customers like Freescale that have exposure to Motorola, as we believe Q2 and Q3 handset shipment at Motorola have further weakened, thus adversely impacting the semiconductor companies (like Freescale) that supply into Motorola."

Going forward, TSMC's business continues to grow. "Shipment could increase by 15-17 per cent [in Q3], exceeding prior expectations of up 14-16 per cent," according to the firm. "PC food chain and increased outsourcing by Spansion are believed to be the areas of particular strength."

- Mark LaPedus
EE Times

Comment on "AMD, TSMC seal foundry deal: report"
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top