Print 12 comment(s) - last by phazers.. on Mar 5 at 12:28 PM

AMD officially sheds its manufacturing operations

The slow economy has forced AMD, the world's second largest chipmaker, to make some hard decisions in the wake of consecutive quarterly losses. The company has been cutting jobs and posted a massive loss in 2008.

In 2008 alone AMD lost over $3 billion with a big chunk of the loss coming as a result of the company’s purchase of ATI in 2006. Earlier this month, AMD shareholders voted to allow the spinoff of AMD's manufacturing arm.

AMD announced this week that it officially finalized the deal to spin off its manufacturing facilities into a new company headed by former AMD executives. The new company will be called Globalfoundries.

DailyTech reported in late February that AMD CEO Dirk Meyer had said that the spinoff would be a culture change for AMD as lots of skilled employees left the chipmaker to help start the new manufacturing company.

Globalfoundries will begin building AMD Opteron and Turion chips for AMD and the company reports that it may outsource the building of its ATI GPUs in the future. Globalfoundries will be headed by former AMD CEO Hector Ruiz. Ruiz was the chairman of the AMD board and his former position with AMD will be filled by Bruce Clafin, a former 3Com and IBM executive.

AMD will continue to migrate its processors from the current 65nm process to a smaller 45nm process. AMD also announced new ATI mobile GPUs this week that are constructed using 40nm process technology.

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By Mr JB on 3/4/2009 12:17:47 PM , Rating: 2
I will be very interested in how the downturn effects AMD even more as some companies have stoped selling AMD stuff again.

I hope for the consumers sake they stick around but with Intel pulling punches like they are they will probaly have to get a few deals with companies to use their manufacturing building which must be at the low end of their capacity.

RE: Time
By Targon on 3/4/2009 4:55:16 PM , Rating: 3
The issue was about how competitive AMD products had been, and really, AMD had fallen off the purchase roadmaps of many people due to the relatively poor performance of the Phenom series(Phenom 1, not Phenom 2). With the Phenom 2 being competitive, more companies are selling AMD based systems again, which is a trend that will continue through 2009.

With the 3.2GHz Phenom 2 due out in April, and improvements to the design of the Phenom 2 processors due out later in the year, AMD is back to being a good choice in the bang for your buck category.

RE: Time
By phazers on 3/5/2009 12:28:00 PM , Rating: 2
With the Phenom 2 being competitive, more companies are selling AMD based systems again, which is a trend that will continue through 2009.

Hmm, this contradicts various reports out this morning that worldwide PC sales are tanking big-time, due to the economy, with desktop sales expected to drop by double digits for 2009. The only bright spot is in netbooks, where unfortunately AMD doesn't have any competitor to the Atom yet.

"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive
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