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AMD Outsourcing chip production?!

Please be rubbish.

| Posted: Jun 21, 2007 1:12 am

If there happens to be any form of truth to this latest rumour, then all the bad things said about AMD's strength in the last year or so have just become even more believable.

 

According to this brief article I spotted over at XBit, AMD are apparently considering the outsourcing of microprocessor production, relying on a third party supplier to make chips so as to cut costs on fabrication technology development (and lay off staff etc.)

 

It could just be a load of hogwash but it isnt exactly easy to brush this off when you know AMD have suffered such huge financial losses in recent times as it is.

 

Shane wrote an article with his take on the whole AMD scenario a couple months ago, which at the time may have been considered pretty far fetched for some, but if this outsourcing business pertains to be true then I dare say he's one step closer to being right on the ball.

 

I just pray AMD arnt intending to do this, as it could spell indefinate catastrophe for them in the long run as they continue to slide down the hill; Without AMD around there's no more real competition for the big gun (Intel), and no more competition means us end-users suffer bigtime, both in the pace of technology growth, and the marked up RRPs on products.

 

The original source of the information was posted up over at ComputerWorld.

 


Advanced Micro Devices, the world's second largest maker of central processing units (CPUs) for personal computers, may be considering to outsource production of its microprocessor to a third party in order to save on fabrication technology development costs.

 

Even though AMD said that a report from Goldman Saschs that described the plan to outsource the manufacturing was "speculative", AMD spokesman Drew Prarie confirmed that the company was trying to focus its efforts on developing chips instead of manufacturing them, a news story by IDG News Service agency reads.

 

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