Advanced Micro Devices recently admitted it could not supply all of its clients with certain processors due to unprecedented and unexpected demand towards its chips. The problem with supply was caused by tight availability of packaging components, according to the company.
“AMD is experiencing unprecedented demand for our desktop processors and this unprecedented demand has depleted our supply of packaging components,” CRN web-site cites an AMD spokeswoman as saying.
According to the web-site, AMD could not ship enough AMD Athlon 64 processors 3500+ and 3800+, AMD Athlon 64 X2 model 3800+ as well as the lower end AMD Sempron models 2600+ and 2800+. The AMD spokeswoman had reportedly acknowledged shortages in the low-end desktop space, but would not comment on specific model numbers.
The official from AMD reportedly stressed that the company had no problems with manufacturing enough silicon wafers, but claimed that shortage issue was a result of issues with getting enough packaging components from appropriate suppliers.
Manufacturing abilities of Sunnyvale, California-based AMD have always been brought into attention by industry experts and analysts. For instance, Michael Dell, the chairman of Dell Inc., the world’s top maker of computers, said that his company would alone consume the whole output of AMD.
Comments currently:
4
Discussion started: 12/26/05 06:38:02 PM
Latest comment: 12/28/05 02:41:13 PM
[1-4]
1.
I guess what's funny is that the supply problems aren't with the actually processors themselves, but with the materials used to mount the processors...
I think that distinction needs tobe focused on since Dell and other companies complaints on supply have stemmed from the supplies of the processors.
Now, if AMD were to use the mounts that it uses in it's higher end products it probably could meet supply volumes... but that would incur an increase in the overal cost of the chip.
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Posted by: Saist
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Date: 12/26/05 06:38:02 PM]
2.
It's nice to see they have such a healthy demand, I suppose. Who would have envisioned the day that people would stand in line, or wait on an order for AMD products?
Let's hope things get sorted quickly and people can get their machines. I will say there were a lot of electronic things from TV's to MP3 players and digital cameras that were quickly reduced to out of stock during the holiday season. So I don't think this is as much of a long term issue as it is a probable spike in demand.
Sorry that sounds mean, but I didn't want it to be. I'm just highlighting that even firms with huge production capacities, Sony for example, had items that were totally sold out during the holidays. And thus it "may" not really be as much of AMD's fault really so much as in some cases, no one could produce as much of something as people wanted during the holidays.
$.02
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Posted by: Anemone
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Date: 12/27/05 05:04:40 AM]
3.
Well, FAB35 will come online and supply problems will be gone.
Forever ?
BTW this is pretty annoying, in Europe's channel there is huge shortage of 2500+ Semprons, 3000+ and 3200+ s939 A64s.
We had to go for 3500+ in order to get our machines before xmas to include them in this year's budget.
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Posted by: mino
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Date: 12/27/05 09:09:33 PM]
4.
Well, this issue should be solved by the emergence of Fab 36 launch. As for Dell, everyone knows that Dell is a political technologist. The Fabs AMD has could sustain the chips needed by Dell since they are not planning to be AMD only. Dell only threatens Intel with AMD just to get some rebates and not that they were actually planning anything to produce AMD based desktops. It's even not with chips this time but the packages to case those chips. To me, this is not a bad news but a compliment which I believe will make AMD proud even though they should be smart enough to transform this opportunity to generate enough revenue for them.
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Posted by: Tunde Adeolu
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Date: 12/28/05 02:41:13 PM]
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