Chartered to Supply Processors to AMD in June

AMD to Get Capacity Boost in June

by Anton Shilov
03/30/2006 | 11:36 PM

As projected, Advanced Micro Devices may receive the first processors from its partner Chartered Semiconductor in June, 2006. This will give AMD an ability to supply more processors than it can now and consequently increase its market share, something that the company has been very aggressive about for several quarters now.


According to a report from Forbes, which is cited by Fabtech web-site, AMD is expected to see its microprocessors roll off the fabrication line at Chartered Semiconductor 300mm facility, Fab7 in June 2006. Chartered expects to be able to ramp Fab7 to 18 000wspm (wafer starts per month) by the end of 2006, doubling its current monthly output, it is also claimed.

Fab7 has so far been fabricating the microprocessor for Microsoft’s Xbox 360 under a foundry contract with IBM, the chip designer and a fabrication partner for Microsoft.

In November, 2004, AMD and Chartered Semiconductor Manufacturing announced they have entered into sourcing and manufacturing technology agreements whereby Chartered will implement under license portions of AMD’s Automated Precision Manufacturing (APM) software suite and become an additional manufacturing source of AMD64 microprocessors.

Since AMD really initiates outsourcing of its chips to Chartered in the second quarter, availability of its AMD64 processors, such as AMD Athlon 64, AMD Opteron, AMD Sempron and others, should be pretty high in the second half of 2006, as in the first quarter AMD’s new Fab 36 initiated production. The Fab 36, which can produce up to 13 000 300mm wafers per month initially uses 90nm process technology, but will eventually use 65nm fabrication process.

AMD plans to add production output on a steady year-to-year basis, giving it the potential to ship as many as 100 million units in 2008, while also keeping fab utilization at consistently high levels, the company said in a statement dedicated to the grand-opening of the Fab 36. The manufacturer’s chief executive Hector Ruiz told a web-site, just days before the opening, that the plan was to make 100 million processors in 2008-2009 timeframe only using AMD’s manufacturing capacities in Germany, which does not give any clear indication whether AMD actually demands any third-party’s manufacturing capacities. The company also frequently changes market share targets it sets for itself: from 25% to 33%.