Duron CPUs to Be Made by UMC?

by Anna Filatova
12/18/2001 | 07:11 AM

The Inquirer site shared some rumors about the possible cooperation between AMD and UMC in terms of the CPU manufacturing. Unlike the previous cases, this time the rumors are much more concrete: now the sources suppose that UMC will be producing not the entire processor range, but only the low-cost Duron family.
As we have already pointed out, the rumors like that are more or less grounded that is why they keep cropping up now and then. Bearing in mind all the info available now, we would like to point out what makes us regard these rumors more or less seriously once again:

• In order to continue the competition with Intel in the processor market AMD has to increase its production capacities, because its own capacities are insufficient.
• UMC has very well built 0.18micron production lines, and in the middle of next year they are going to put into operation 0.13micron production lines as well. It corresponds perfectly to the info we told you here (the launching of 0.13micron Duron in Q3 2002).
• UMC has very few large customers (unlike TSMC) and it is very likely to do its best to help AMD out.
• The companies have already cooperated successfully: UMC made some AMD-760 chipsets for AMD.
• According to AMD’s plans revealed at Comdex fall 2001, the fab 25 in Austin (Texas), which is now making all Duron CPUs, will be reequipped for Flash production next year. It proves the supposition that the production of these CPUs will be moved to some other place. Fab 30 in Dresden, which is now making all Athlon processors doesn’t suit for this purpose, because it is expected to get 100% loaded next year. Especially since AMD is now equipping it for the manufacturing of new 0.13micron Thoroughbred Athlon core, that is why some rooms are standing idle currently. The same situation should be observed in the near future (gradual shift to 0.13micron technology). So, there will hardly be any place in Dresden for Duron CPUs. Therefore, the question arises: if not in Austin or Dresden, then where? The answer is evident: by UMC!