Industry sources cited by DigiTimes claim AMD is going to outsource some of its processor production to TSMC in the second half of this year. Outsourcing some of its CPU production could allow AMD to sell some of its manufacturing equipment and help lower the company's operating cost.
Although Hector Ruiz, CEO of AMD did not mention any plans to outsource production during the company's recent investors conference, the industry sources revealed that TSMC has already started testing procedures for a SOI manufacturing process in order to land manufacturing orders for AMD's Fusion CPUs.
The increase in outsourcing could allow AMD to sell off some of its manufacturing equipment and help lower the company's operating costs, noted sources at AMD's partners
AMD's current goals are to return to profitability in the first half of 2009 and to grab back a 30% worldwide market share by the second quarter in 2009, noted the sources.