SAN FRANCISCO—Advanced Micro Devices Inc. Wednesday (Sept. 28) warned that third quarter sales would be up less than expected compared to the second quarter, primarily because of 32-nm yield issues at its foundry provider, Globalfoundries Inc.
AMD (Sunnyvale, Calif.) said it now expects sales for the quarter ending Oct. 1 would be between $1.63 billion and $1.66 billion, up 4 to 6 percent compared to the second quarter. The company previously said it expected sales to increase 8 to 12 percent sequentially.
AMD said the shortfall was primarily due to 32-nm yield, ramp and manufacturing issues at Globalfoundries' fab in Dresden, Germany, which limited supply of the company''s Llano processor.
Also, 45-nm supply was less than expected due to complexities related to
the use of common tools across both technology nodes, according to AMD.
AMD said it continues to work closely with Globalfoundries to improve 32-nm yield performance.
AMD said it expects its third quarter gross margin to be 44 to 45 percent, compared to a previous forecast of about 47 percent. The gross margin shortfall was also attributed to lower supply of Llano chips and associated products with higher average selling prices. Shipments of AMD’s next-generation server processor, codenamed Interlagos, occurred later in the third quarter than originally anticipated, AMD said.
AMD is scheduled to report its third quarter results on Oct. 27.