The market of computer chips seems to be improving even quicker than originally anticipated by the leading market players. In the recent months shortages of Intel Corp.’s latest mobile processors occurred and according to a report published on Tuesday, Advanced Micro Devices also cannot ship enough chipsets.

In an attempt to maximize its profits, AMD decided to re-allocate 55nm manufacturing capacities of Taiwan Semiconductor Manufacturing Company from chipsets to graphics processing units (GPUs) in late 2009 – early 2010 due to low yields of 40nm node at TSMC, reports DigiTimes web-site. As a result, the company did not manage to stockpile enough core-logic sets.

Even though TSMC's recent 40nm yields have started to see significant improvements which has helped to ease the tight supply of 55nm GPUs, the company's chipset supply has started turning tight as demand is picking up, the report claims. There are also market rumours that AMD cannot ship enough high-end central processing units (CPUs).

According to sources among Taiwan-based makers of mainboards and personal computers, AMD's chipset shortage may to endure throughout the Q3 2010 and is doubtful that it would be resolved before the end of September.

It remains to be seen whether the tight supply of chipsets will negatively affect CPU market share gains of AMD. The company has been working hard to improve its microprocessor lineup and currently the families of desktop, mobile and server chips are very competitive. However, in case there are no chipsets and/or mainboards, system makers will not buy CPUs.

AMD did not comment on the news-story.

Tags: AMD, Phenom, 40nm, 55nm, TSMC, Athlon