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Advanced Micro Devices has validated 65nm process technology of Chartered Semiconductor, according to media reports. Theoretically, AMD may start commercial production of chips using 65nm capacities of the Singapore-based chipmaker.

A news-story at DigiTimes web-site citing industrial sources claim that Singapore-based Chartered Semiconductor’s “65nm central processing unit production” has been validated by AMD. The latter is planning to start selling 65nm chips produced by Chartered only in the second half of 2007, the report notes.

Chartered Semiconductor also plans to initiate shipments of PowerPC-based custom central processing units produced using 65nm manufacturing process for Xbox 360 game consoles in Q1 2007.

AMD, according to unofficial information, orders about one thousand 300mm wafers per month, on 90nm technology from the Singapore-based chipmaker. Chartered started production for AMD back in May, and the first shipment was scheduled for July.. It was also earlier reported that AMD may increase its orders to Chartered to about three thousand wafers per month.

Currently AMD produces about 30 thousand 200mm wafers per month on its Fab 30 and has also initiated shipments of chips produced at its Fab 36, which current capacity remains unknown. Provided that the yields are identical, 1 thousand of 300mm (12”) wafers outputs the same amount of microprocessors as 2.25 thousand of 200mm wafers, which means that AMD’s production capacity may be boosted by high as 7.5% (real figure will be lower, as Fab 36 capacities were not counted).

But while 7.5% does not sound as a too substantial increase in availability, this will still help AMD to sell more of its chips, which were in tight supply in the past due to high demand. Additionally, as the Fab 36 ramps up and AMD’s orders to Chartered increase, the company will be able to ship significantly higher amount of microprocessors as compared to its abilities today. Recently the company reconfirmed its plans to ship two times more processors in 2008 than it did in 2005.

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