Update: AMD To Ditch Initial AM2 2x1MB Cache Desktop CPUs
June 14, 2006 1:37 AM
comment(s) - last by
AMD pushing 2x512KB chips instead
Not to the surprise of
, AMD representatives are telling its CPU distributors to play down 2x1MB L2 cache
processor sales in favor of the 2x512KB AM2 parts. Several days ago,
published the entire AMD
July 24th pricing guide
complete with price cuts across the board. The price list was surprisingly devoid of AMD 2x1MB cache CPUs, and today we know the reason why.
Several US distributors all confirmed the same story with
, either claiming either a lack of information about the 2x1MB
parts or claiming AMD employees were told to disregard 2x1MB cache desktop parts for the time being.
While distributors could not tell
exactly the reason for the reduction, the cost of running two separate cores and logistics for those cores is obviously eating at the bottom line for AMD. The additional cache per chip means fewer chips per wafers and the additional SKUs means that more marketing dollars must be spent -- and when battling it out with Intel on the pricing front, every dollar counts.
Furthermore, AMD can dedicate all of its fab resources to work on a unified design rather than splitting development between two separate cache revisions. AMD's Turion X2 lineup does not contain any 2x1MB L2 cache components.
Scott Wasson from
The Tech Report
seems to have also confirmed that the 2x1MB chips are toast.
This article is over a month old, voting and posting comments is disabled
6/14/2006 12:36:42 PM
AMD cannot afford to have big cache/die size and cutting prices at the same time. Just simple as that. Their cost structure won't sustain the profitability if they are doing both.
nothing to do with dell order, as AMD's fab 30 (now fab 38) has only started to convert to 300mm and fab 36 (the new one) is only a shell with *potential* capacity.
6/14/2006 3:59:27 PM
And you get modded down for speaking the truth! You must have offended the fanboys.
6/14/2006 9:49:04 PM
Well not me then - :)
I actually think AMD is taking some BOLD steps at the moment :(
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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