AMD May Ditch Fabs In Cost Cutting Measures

Currently, AMD have two fabrication plants namely Fab 30 and Fab 36, located in Dresden, Germany. Operating fabs are a very costly affair and apparently they could be the next thing to go in AMD’s current cost-cutting strategy:

Speculation is building in the analyst community that AMD will attempt to further cut costs by outsourcing more—or all—of its chip making as early as 2008. One Citigroup analyst is predicting a “transformational move” that would result in AMD’s lower-end CPUs being manufactured by a third party and possibly selling off part or all of its Dresden, Germany facility. Another report from Goldman Sachs outlines the investment firm’s belief that the company will leave manufacturing completely in the hands of third parties.

I’ve been an ardent fan of AMD processors since God knows how long. The only non-AMD CPU computer I’ve used was a Compaq Presario PC given to me by my dad. Since then, all my subsequent PCs are self-assembled units powered by AMD processors.

My preference for AMD processors is mostly due to the low overall costs involved in assembling a PC on that platform. AMD processors are much cheaper than it’s comparable Intel counterparts. Motherboards for AMD processors are also generally less expensive than a similar one for Intel.

Therefore, I’m hoping that things will get better for AMD. Should anything happen to them, then Intel would surely be a near monopoly in the CPU market. Not that I have anything against Intel, it’s just that I prefer a competitive market because it drives innovation.

3 responses to “AMD May Ditch Fabs In Cost Cutting Measures”.

  1. kucau Says:

    ermm why dont they open up FAB in china? that would be cheaper i guest

  2. Site Admin Azmeen Says:

    Probably because the existing fabs works just fine, and that upgrading an existing one would be far more cheaper than starting one from scratch.

    Additionally, there’s lots of issues involved when expanding into China.

  3. papajoneh Says:

    I just hope AMD continues their excellent job. I love my Turion and im getting the desktop version in the near future just for my kid(s). All the best to them.