Drastic bid to become more competitive sees AMD ditch home grown chipmaker.

AMD dumps former chipmaker for new APUs

Reports have surfaced that AMD has moved to cancel the production of new 28nm APUs with the chipmaker’s usual GlobalFoundries partner.

The decision to move production to Taiwanese TSMC looks almost certain to introduce delays in the next-generation of combined CPU/GPUs at a time when the Fusion chips are managing to do well against Intel’s mobile efforts.

GlobalFoundries was original created by AMD by spinning off the firm’s own manufacturing facilities. The goal was originally that AMD would be the chipmaker’s main client while also adding other business.

The cancellation involves the new Krisna and Wichita cores and reportedly is the result of GlobalFoundries being unable to ramp up 28nm production in 2012.

Extremetech noted that Intel’s lead on process technology had widened in recent years. "If AMD doesn’t field something competitive in the next 24 months, the gulf between the two may grow too wide to leap," they added.

AMD’s recent dramatic changes such as axing a large part of the firm’s marketing department and now cutting lose from their home grown silicon shop is part of AMD boss Rory Read’s plan for improving the company’s competitive standing.

AMD needs to not only hit back with competitive products to rival Intel but also introduce new products for the booming mobile market which is so far dominated by SoC manufacturers with ARM processor cores.

ExtremeTech also noted the considerable impact to AMD’s planned notebook CPU/APU roadmap that will likely result from the change. It could be that things may get worse before they get better.

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