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AMD Cannot Supply Enough Chips, Company Says

AMD Admits It Cannot Meet the Demand

by Anton Shilov
12/26/2005 | 05:31 PM

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.

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“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.

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