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Fusion processors are cheap, power efficient, and pack a powerful GPU -- a winning combination for budget designs.  (Source: Computer Shopper)

The chip has helped AMD finally turn the corner and return to profitability.  (Source: Maximum PC)

  (Source: Comic Vine)
Once troubled chipmaker appears to be turning the corner thanks to GPUs and CPU/GPU "Fusion" combos

Advanced Micro Devices, Inc.'s (AMD2006 purchase of ATI Technologies for $5.4B USD was widely criticized and scrutinized at the time.  But it now appears that it may have saved the company.

After a couple years of losses, AMD finally appears to be turning the corner this year.  The company reported [press release] an impressive net income of $510M USD on revenue of $1.61B USD.  Its operating income was $54M USD and its non-GAAP income was $54M USD.

The strong earnings were largely driven by AMD's continued dominance in GPU sales.  They also were driven by AMD's new Fusion system on a chip that packs power-savvy Bobcat CPU cores on a die with a full Evergreen (found in the 6000 series) GPU.

OEMs appear to be embracing the chip.  Acer, Asus, Dell, Fujitsu, HP, Lenovo, MSI, Sony and Toshiba have all launched Fusion designs.  And the chips are also becoming popular in the embedded sector for devices like casino machines, which need a more power GPU to drive a large screen.  Fujitsu, Kontron, Quixant and Congatec are all pushing embedded applications of Fusion chips.

Thomas Seifert, CFO and interim CEO, elates, "First quarter operating results were highlighted by strong demand for our first generation of AMD Fusion Accelerated Processing Units (APUs).  APU unit shipments greatly exceeded our expectations, and we are excited to build on that momentum now that we are shipping our 'Llano' APU."

The Fusion chips are proving so popular for several regions.  First, AMD has priced them very competitively, so they're winding up in very affordable laptop designs.  Secondly, the chips are very power efficient.  And finally they offer a nice performance blend, offering sufficient CPU performance and relatively powerful GPU performance.

By contrast Intel Corp.'s (INTC) latest design Sandy Bridge, also packs an on-die CPU/GPU pairing.  But the onboard GPU is significantly weaker, the power consumption is higher, and the chip is more expensive.  Thus while it is solution of choice for high-power enthusiast desktops and laptops, it's less than optimal for the much larger budget laptop/desktop market.  

Sandy Bridge was also hurt by early defects in its SATA connections, which have since been fixed.

A common criticism leveled against Fusion is that having a discrete GPU in a budget design is superfluous.  However, for Blu-ray playback or playing popular older video games like World of Warcraft, customers definitely come to appreciate the benefits of the design.

It appears that AMD is, at the moment, out-competing Intel much in the same way it outcompeted graphics chipmaker NVIDIA Corp. (NVDA) -- by attacking the low end.  Of course, AMD's growing Fusion sales likely would not have been possible were it not for new scrutiny from U.S. and European antitrust regulators that forced Intel to stop paying off OEMs to ignore AMD designs.

It's worth noting that Intel still leads AMD significantly in market share.  AMD is also experiencing leadership troubles of late, with a number of executives departing.

But at the end of the day, though, even in the face of these issues and bigger questions loom about the future of x86 processors as a whole, AMD looks much better positioned to be competitive with Intel.  And all of that comes back to the increasing returns from its strong GPU division.



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RE: Glad to see it
By Manch on 4/22/2011 10:44:41 AM , Rating: 3
Now thAT AMD has spun off it's foundries(ThE Foundry Company?) and in turn they now produce chips for other companies, I dont see why they can't close in on the process part since that's all they do. Now that AMD is soley a chip designer, they should eventually be able to catch up on the architectural side. Plus you need to remember murphys law(almost as important as moores law ha!) as it's tripped up both Intel, AMD, and Nvidia. AMD doesnt need to match Intel clock for clock to be competitive but they do need to eventually produce a chip thats within spitting distance, and with that they can compete on price. If nothing else, a threat to Intels highend will force them to drop prices which is good for us the consumer.


RE: Glad to see it
By acsa77 on 4/22/2011 7:00:37 PM , Rating: 2
Once there was a long, deep insight article about the long-term strategy of ATI already working inside AMD. It was professional and we see the success results. But then I don't understand, why didn't see AMD that Banias, a mobile platform was the right base for all other platforms? They practically lost the notebook blossoming in the last decade and a lot of ground in the server market. Athlon64's pure performance alone was simply not enough. OK, I didn't see it in 2003, but hey, AMD paid professionals to see it in 2001 :)


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