AMD now selling chips made by Chartered http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-07-13T040114Z_01_N12354227_RTRIDST_0_TECH-AMD-CHARTERED.XML&rpc=66
Thu Jul 13, 2006
SAN FRANCISCO, July 12 (Reuters) - Advanced Micro Devices Inc. (AMD.N: Quote, Profile, Research) said on Wednesday that it had started selling computer processors made by its contract manufacturing partner, Singapore's Chartered Semiconductor Manufacturing Ltd. (CHRT.O: Quote, Profile, Research)(CSMF.SI: Quote, Profile, Research).
The arrangement is significant because it gives AMD, which once struggled with supply and capacity issues, some breathing room as it builds new facilities of its own.
"This gives us the ability to modulate output based on customer demand," Thomas Sonderman, director of manufacturing for AMD, told Reuters. AMD said earlier this year it expected to ship chips from Chartered by the middle of 2006. AMD is entitled to an undisclosed amount of production capacity from Chartered's Fab 7 facility.
Sunnyvale, California-based AMD has been steadily gaining market share from Intel Corp. (INTC.O: Quote, Profile, Research), the world's biggest chipmaker, leading it to lay out ambitious expansion plans that will quadruple capacity by 2008.
In May, AMD said it will spend $2.5 billion to expand and upgrade its facilities in Dresden, Germany, and last month it announced plans to build a $3.2 billion plant in New York state that will boost capacity another 50 percent over the expected 2008 level.
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