AMD Vows to Improve Availability of ATI Radeon HD 5000 Graphics Cards In Weeks

AMD Admits: Supply of ATI Radeon HD 5000 Series Not Sufficient

by Anton Shilov
10/19/2009 | 09:04 AM

The chief executive officer of Advanced Micro Devices said that the company would be able to ship more ATI Radeon HD 5000-series graphics cards in the coming weeks. AMD admits that at present the situation with availability of the latest DirectX 11 graphics cards is improper. Taiwan Semiconductor Manufacturing Company is partly guilty of insufficient shipments of ATI Radeon HD 5000-series graphics cards.


“TSMC has made good progress with the 40nm technology. At this point our new ATI Radeon HD 5000 family is pulling on 40nm and as is always the case with the hot new product early in the launch: we are hand and mouth on supply. I expect that situation to improve over the coming weeks and months,” said Dirk Meyer, chief executive officer of AMD.

At present ATI, graphics business unit of AMD, ships Radeon HD 5700 and 5800-series graphics processors and aims premium segments of the market. Unfortunately, due to relatively low yields of 40nm chips at TSMC, the company cannot ship enough DirectX 11 graphics chips to satisfy the demand.

AMD last week reported revenue for the third quarter of 2009 of $1.396 billion. Third quarter 2009 revenue increased 18% compared to the second quarter of 2009 and decreased 22%  compared to the third quarter of 2008. In the third quarter of 2009, AMD reported a net loss attributable to AMD common stockholders of $128 million, or $0.18 per share, which includes a net favorable impact of $54 million, or $0.08 per share, primarily from a $66 million gain from the repurchase of debt.  AMD's operating loss was $77 million. 

Sales of AMD’s processors and chipsets equaled $1069 million, whereas sales of graphics processing units achieved $306 million.

"Strong demand for our product and platform offerings combined with disciplined execution resulted in AMD Product Company achieving profitability in the third quarter. Growth in microprocessor and graphics unit shipments drove an 18% sequential revenue increase, while improved factory utilization rates, higher microprocessor average selling price and an increase in 45nm product shipments resulted in a gross margin improvement from the prior quarter," said Mr. Meyer.