AMD Graphics Chip Shortage Hits PC Vendors

CWmike writes "An offshore AMD foundry is having trouble ramping up production of a new 40-nanometer GPU, forcing PC makers to delay shipments of desktop and laptop computers, AMD confirmed today. TSMC is struggling to get up to speed manufacturing AMD's 5800 series, 40-nm GPUs, according to Jim McGregor, an analyst at In-Stat. He added that the foundry is in full production, but so far yields are below expectation. Matt Davis, a spokesman for AMD, confirmed that TSMC is having issues with production of the chips. He added that it's not clear how far behind the foundry is on production expectations. 'The design is sound. It's just a matter of trying to get TSMC to a point where they can yield. They're feeling the manufacturing crunch,' said Davis. 'We're a little bit under yield but we're working back into a manufacturing schedule we want for these parts. TSMC can only kick them out so fast at this point.' He said that PC vendors are being affected but declined to say how many vendors are feeling the pinch or which ones. 'It's the end of the whip,' he added. '[The vendors] are going to have a hard time.'" A post at Anandtech suggests we'll see price hikes for the 5800-series Radeons until this situation sorts itself out.

Comments

Re:This is where Intel rules

[tlhIngan]

AMD actually used to have some of the best fabs in the business. They managed to have good yields and mixed production in the same plant. AMD started using copper before Intel for e.g. That part of the business was spun-off as Global Foundries. But yeah, Intel has the best production research and facilities in the industry. It is just that they don't share their fabs with anyone else.

True, but AMD also had a problem with capacity - they literally had to have good yields because their fabs were often running at full capacity because they were always backordered. I can't remember a time when AMD had excess production capacity. Heck, it was often why AMD's chips were poor overclockers - they got binned at their highest speed they were stable at and sold because demand was such that there was no spare chips.

Also why Apple didn't go AMD - Apple has way too much experience being burned by Motorola and IBM both being unable to supply chips in heavy demand. And AMD would've killed for the Apple contract given the way Apple orders parts. But it would pretty much mean that there would be no AMD chips for anyone else.

Heck, it might've been why Microsoft switched from AMD to Intel for the original Xbox. Production problems caused a very expensive redesign for Microsoft and nVidia (to create an Intel compatible chipset).

Intel's got huge fab capacity, and can oversupply quite easily. In fact, there's so much oversupply that Intel often holds back production of faster chips and waits for AMD to catch up to keep prices up. Also why Intel can do special fab runs for customers (like how all Apple's chips support VT, or the special chip in the MacBook Air, etc).

The only real production problems I remember are the special Pentium 3 1.13GHz processors. Which were basically just overclocked Pentium 3s and Intel was called out on it when systems were crashing.