AMD contracts to give TSMC's profits a boost

TSMC may see its sales for this quarter grow as a result of contracts with AMD to make its   40nm Northern Island and Ontario chips.

According to the Taiwan Economic News, AMD is expected to announce its Northern Island graphic chip next week, and begin to ship Ontario chips designed for its Fusion processor by the end of this year.

Sources close to the island tell TechEye that the Llano Fusion processor, which is being built by TSMC is now sampling widely, while GlobalFoundries (GloFo) is on target to ship them in volume during the first half of 2011.

Ontario chips are very much the low end of AMD’s SKUs – the Llano will use 32 nanometre High-K Metal Gate technology.  Llano chips are being built by GloFo at the company’s fab in Dresden – formally owned by AMD. GloFo claims it is the only foundry to make high performance integrated semiconductors using HKMG, using Gate First transistors.

TSMC has signed the contracts for making two chips, which will soften the effect of market slowdown on the company`s sales for this quarter.

Dirk Meyer, president and chief exec of AMD said recently that computer sales in Western Europe and North America weren’t as buoyant as he’d have liked, last quarter.  Last quarter AMD had sales of US$1.62 billion as opposed to the US$1.65 billion in Q2.