AMD starts sampling Fusion to customers

At AMD’s first quarter conference call yesterday evening, CEO and President Dirk Meyer confirmed that volume products of its next gen graphics product Fusion will start towards the end of this year.

Meyer said that AMD already has internal samples of its two initial fusion designs.

He said that AMD has already started sampling one of those two designs to selected customers.

AMD will ramp production in the second half of this year and product will be available in the first half of next year.

Bobcat core will first appear in the Ontario product, focused on netbooks and value customers but there will be lower power versions on Bobcat aimed at tablets.

Meyer said that demand for DX11 products was very healthy and outpaced supply. Over 50 percent of its notebooks are now Vision branded. Graphics revenues of ASPs increased.  He said that demand for the Opteron 6000 has been strong, and the 4000 series is on track for release this quarter.

On the server side, Magny-Cours product will start to appear early in this qarter. He said response to the product was “pretty enthusiastic”. He said AMD had some “pretty encouraging feedback” from some big enterprises.

The enterprise server business started to pick up in Q3 last year and is still healthy. Meyer said he was optimistic that servers would remain strong for AMD.

He said: “Magny-Cours product really gets us back in a competitive position in the 2P market since probably the middle of 2006. To the extent we disproportionally grow our server business it’s good for our ASPs.”

AMD was supply constrained on 40 nanometer GPU front in its first quarter. There will still be a gap between demand and supply. It will be narrowed in this quarter but AMD will be hand to mouth for most of this year.

Supply constraints make it difficult to predict how the GPU market will grow. There’s talk of shifting that business to Global Foundries at 28 nanometers – AMD’s Meyer wouldn’t comment on that.