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Advanced Micro Devices not only increased its market share significantly in the last quarter of 2005, but also found itself unable to supply enough its processors to clients. According to Ingram Micro, the world’s largest distributor of AMD processors, the tight supply will only be resolved by March, whereas dealers complain that they had already been waiting for over a month to get certain models.

According to, AMD supplies its chips first to original equipment makers, the to other purchases of chips in large quantities and only then ships processors to its channel clients, e.g., smaller system makers and retailers. While such practice is natural for all chip companies, including such as Intel Corp., by now AMD’s supply policy already caused prices on certain processors to rise.

“We can already be glad if we get 200 or 300 Athlon 64 3200 processors,” explains an unnamed wholesaler from Westphalia, Germany.

In late December, 2005, it turned out that AMD is not capable of shipping 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+. AMD cited insufficient amount of packaging components last month as a reason for its inability to supply enough products.

The web-site quoted Marc Florian Gerken, a manager of Ingram Micro in Europe as saying that he counts on improved “deliver situation” with the Sempron 2600, Athlon 64 3200 and Athlon 64 3500 only at the beginning of March.

AMD did not comment on the news-story.


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