AMD Enlists TSMC for 28nm Temash and Kabini APUs

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News Posted: Sat, Jan 12 2013 11:50 AM
The last thing Advanced Micro Devices (AMD) needs right now is to have to deal with continued supplier issues as the year reboots. It's been a tumultuous year for the Sunnyvale chip designer, and to ensure things on the supply side run smoothly, AMD has reportedly tapped Taiwan Semiconductor Manufacturing Company (TSMC) to build its upcoming 28nm Temash and Kabini APUs that were unveiled at the Consumer Electronics Show (CES) earlier this week.

It's another big win for TSMC, which reportedly scored a contract to build A6X chips for Apple just last week. AMD will still lean on Globalfoundries as well, but will no longer put all its chips in one bag, so to speak. According to Fudzilla, Globalfoundries is still having some manufacturing issues despite a major effort to ramp up to 28nm.

A 12-inch wafer produced at TSMC's Fab 14. Source: TSMC

"We met several AMD executives at CES and they told us that with 32nm Richland, 28nm Temash, and Kabini, things should start to look better for the company," Fudzilla reports."Basically, it looks like 2013 will be a much better year for AMD."

AMD's move to TSMC doesn't come as a surprise. The writing was on the wall when AMD renegotiated its contract with Globalfoundries at the end of last year, slashing the number of wafers it would have to buy. Instead of being on the hook for $500 million worth of wafers from Globalfoundries, the new contract reduces AMD commitment to $115 million, plus a $320 million penalty payment, effectively saving AMD $65 million.
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realneil replied on Sat, Jan 12 2013 8:39 PM

"plus a $320 million penalty payment"

Is it just me, or does this sound like a really screwed up way to do business?

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