AMD admits to entering the chipset business in 2006

COLLAB distinguished with the APDC / Siemens Innovation Award

For now it is just a possibility that, if materialized, would be part of a scenario of closer ties with current partners in this area. Hector Ruiz, president of AMD, admitted that after the completion of the new plant of the American company in 2006 – in Dresden, Germany – the group will have overcapacity and this could motivate a closer approach to the partners responsible for the development of chipsets for AMD, taking advantage of the production capacity available at the facility.

For the conception of chipsets AMD normally resorts to ATI Technologies, Nvidia and Via Technologies with whom it may sign production agreements, the official admitted. «It is entirely possible that some part of our excess capacity will be used in partnership with manufacturers of chipsets«, detailed in statements quoted by PC World.

The possibility would be a good solution for AMD, which would solve its excess production capacity, even though the company had already agreed that its capacity could be used to respond to greater demand for its products in the American market and to manufacture new low-cost lines.

Unlike rival Intel, which considers it more able to develop integrated products if it has responsibility for the manufacture of all components, AMD is only responsible for the manufacture of a minimum number of chipsets, to meet your needs, leaving mass production to partners.

AMD’s new plant strengthens the capacity of the existing plant in that city and adopts more advanced manufacturing technologies. While the unit already in operation uses 90 nanometer technology, the new unit will adopt 65 nanometer technology.

Related News:

2005-03-10 – AMD 64-bit architecture arrives in notebooks

2003-08-07 – Advanced Micro buys unit from National Semiconductor