AMD is in trouble because of GlobalFoundries

Advanced Micro Devices has reinforced GlobalFoundries ’manufacturing concerns, creating a tense situation among investors.

AMD was no longer able to keep up with the situation, so it was forced to officially admit yesterday that there were problems around the 32-nanometer manufacturing technology, making it unable to serve market demand. GlobalFoundries, AMD’s contract manufacturer, is struggling with current bandwidth issues, so despite the high level of interest around Llano processors, they are unable to push error rates to the right level, resulting in far fewer working chips than expected.

Another problem is that central units using the Bulldozer architecture would also be made here, but since Llano is struggling with poor yields, it takes up a significant portion of manufacturing capacity, presumably one of the reasons it had to slip AMD’s top tiles. Unfortunately, the seemingly striking technology is in vain in the Fusion inserts, and presumably in the Bulldozer, if the manufacturing technique fails to meet expectations. So far, this has not been acknowledged by the manufacturer, but it has been forced to take action under increasing voltage. The problem is no longer new, it was already felt at the end of the previous quarter, of which Llano had already taken its share, but Intel, according to market analysis IHS, still increased its advantage over AMD in revenue distribution.

In its latest revised forecasts, AMD expects only half of that to be 10-4%, instead of the 6% growth forecast so far. This is expected to be 1,725 million less in the third quarter, compared to the originally planned revenue of $ 75 billion, which is 1,65 billion, according to the current outlook. Investors reacted extremely poorly to the news, stock prices have been falling steadily since yesterday, today they have depreciated by 5%, but compared to their pre-announcement value, sales prices have already fallen by about 9%.

Source: VR-Zone