AMD's Bright Outlook Likely to Boost Taiwan's Supply Chain

Taipei, Aug. 16, 2011 (CENS)--Taiwan's IC supply chain is expected to benefit from good business performance of Advanced Micro Devices Inc. (AMD), which is projected to outperform archrival Intel Corp. in the third quarter with increased shipment of accelerated processing units (APUs).

The Taiwan supply chin is mainly composed of manufacturers including foundry Taiwan Semiconductor Manufacturing Co. (TSMC), packager Siliconware Precision Industries Co., Ltd., tester STATS ChipPAC Taiwan Semiconductor Corp., and substrate maker Nanya Printed Circuit Board Corp.

AMD estimates its revenue for the third quarter to rise 8-12% from the second quarter, compared with Intel's projected 8% revenue growth. According to AMD, it has enjoyed robust APU shipments since the second quarter, with both its PC and laptop APU shipments hit new highs.

AMD has contracted TSMC, currently the world's No.1 pure foundry, to make its Ontario, Zacate, and Desna processors using 40-nanometer process technology as well as its Hudson chips using 65nm process technology.

While increasing foundry outsourcing to TSMC, AMD has augmented packaging and testing contracts to Taiwan's providers as well. Nanya is also expected to land contracts via Japanese partner NGK Spark Plug, which has directly received substrate contracts from AMD.

In the second quarter, AMD saw its revenue slightly dip 2% from the first quarter to US$1.57 billion, while its gross margin was 46%, up from 45% recorded in the first quarter this year.