AMD will focus on products with higher demand
A few days ago amd re-contract with GLOBALFOUNDRIES business, making a decrease of 26.2% (U.S. $ 610 million to $ 450 million per quarter) in the volume of production previously engaged with GlobalFoundries, although AMD had to pay U.S. $320 million in compensation to GlobalFoundries to change the contract previously signed at the time of the divestiture of GlobalFoundries in early March this year .
The lower production volume contracted by AMD aroused a number of conjectures about possible bleak future for AMD (as usual in rumors every week about AMD). Rory Read, CEO of AMD, explains that this decision reflects a reorganization in the line of CPUs / APUs from AMD, which seeks to simplify its product line from the current new types of used manufacturing process (45nm, 32nm, 55nm , 40nm and 28nm, some of them used in the LP variants ) only two (32nm and 28nm), while reducing production costs by $640 million a year (U.S. $160 million for each quarter ).
This focus on AMD claims its products in greatest demand, while intended lower production volume product lines with lower demand, a decision somewhat risky, but necessary in order for AMD to accelerate its pace of releases new products, focusing adapt to manufacturing processes using industry standard, but without neglecting performance.
– Chief Executive of AMD: We Are Not Interested in Low-Volume Customers (Xbit Labs)
– Further Reduces AMD Chip Orders to Globalfoundries as Demand Slows (Xbit Labs)