subscribe: Daily Newsletter

 

AMD eyes ‘fabless’ model

0 comments

AMD, which has survived seven loss-making quarters, may be looking to outsource its chip manufacturing.

The company will soon finalise a plan to transform its manufacturing operations and hopefully turn its finances around.
AMD owns its own manufacturing plants in Germany, but could be moving towards a "fabless" model.
AMD has lost about $5-billion in the last 18 months and missed its deadlines on its latest server chip, Barcelona.
Since it costs between $3,5-billion and $5-billion to commission a new manufacturing plant, it's a huge undertaking for any company – and AMD only has about $1,57-billion in cash.
Hector Ruiz, who recently stepped down as CEO, is still chairman and is putting the new manufacturing plan together.
Already, AMD's ATI chips are manufactured by a third party, so it's not a completely new route for the company to follow.