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Posted by on Dec 10, 2012 in Hardware News |

AMD will focus on products with higher demand

AMD will focus on products with higher demand

A few days ago re-contract with 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 in the line of CPUs / APUs from AMD, which seeks to simplify its product line from the current new types of used manufacturing (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)

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