AMD retains TSMC for GPU production despite hitches

Jul. 7, 2009 (China Knowledge) - Advanced Micro Devices Inc (AMD), the world's second largest computer chip vendor, said it will continue to cooperate with Taiwan Semiconductor Manufacturing Co Ltd (TSMC) for chip production for its graphics processing units (GPU) despite recent difficulties, sources reported.

AMD recently suffered a shortage of ATI Radeon HD 4770 GPUs because the Taiwanese foundry could not successfully produce the chips on a large enough scale.

In fact, TSMC has had problems handling the 40nm process technology. Its production yields were less than 25% last month, which AMD considered unsatisfactory.

Some analysts have said that TSMC's current 40nm production yields are still lower than 30%, which will affect the firm's shipments and finally lead to the loss of key customers.

Rick Bergman, AMD's senior vice president of platforms, said that the new technology is not easy and that TSMC needs time to enhance the yield of the 40nm process technology.

He also said that TSMC is the firm's primary manufacturing partner and that they have cooperated for ten years. AMD hopes that TSMC will improve and be able to complete orders on schedule, Bergman added.

Last month, TSMC announced that it would provide outsourcing services for 28nm technology at the beginning of 2010.