SAN JOSE, Calif. Moving towards a fab-lite strategy, Advanced Micro Devices Inc. (AMD) is working on a long-awaited foundry deal with Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), according to a report from Barron's.
The report cites two investment banking firms as its source, including Caris & Co. and Lehman Brothers. According to the report, AMD could have some of its processors made on a foundry basis by TSMC "as soon as the 2008 first half," according to the report.
At present, AMD makes the bulk of its processors in house. AMD also has a foundry alliance with Chartered Semiconductor Manufacturing Pte. Ltd. of Singapore.
AMD's ATI unit has many of its graphic chips made on a foundry basis at TSMC, it was noted.
For months, AMD has been talking about going fab-lite, with little or no details in the arena. The move is geared to cut costs and offset ongoing losses.
In July, reports surfaced that AMD and TSMC could be working on a major foundry deal. AMD is also said to be holding discussions about selling its new Fab 38 plant in Germany to TSMC, according to a separate and recent report.