AMD plans exclusive Southern Islands TSMC contract

TSMC really must be rolling in it. Taiwan Semiconductor Manufacturing Co. enjoys lucrative contracts from heaps of chip outlets where it makes fiscal sense to outsource production, and AMD has just, reportedly, expanded its lines.

AMD has signed the papers to book further capacity for its 40nm Zacate and Ontario APUs, as it readies itself to storm China. As TechEye reported last year, the demand is so strong that everyone wants a piece and AMD needs to make sure it has the means to plug that need. 

Taiwan Economic News reports according to sources close to AMD, it wants to sign up all new capacities TSMC is planning to add to its Fab 12 and Fab 14 factories this year so it can begin the roll-out, starting in Beijing this March. AMD’s Llano 32nm is still penned for GloFo production, but it has been talking up TSMC behind the scenes for some time. 

Sources familiar with the matter suggest that AMD also wants to give TSMC the exclusive contract for the upcoming 28nm Southern Islands chip early 2012.

Likewise, when Samsung began kicking up a storm with its own tablets and smartphones, direct competitor Apple is reportedly considering a TSMC contract for CPUs, seeking a neutral manufacturer for the mysterious second generation iPad