Positive AMD forecast means smiles for Formosa

AMD is doing its bit for Taiwan. The good-ish forecasts for the chip maker means the supply chain is set for a boost.

Of course, as AMD uses the huge Taiwan Semiconductor Manufacturing Co., or TSMC to you and I, for outsourcing manufacturing of its chips a contract push is likely to give an air of stability to the region.

TSMC remains the top foundry in the world, and AMD will give Ontario, Zacate and Desna to it for the 40nm process manufacturing.

AMD’s revenues are penned in to rise up to 12 percent, reports Taiwan Economic News, so if the signs are all there for good shipments it should help out Taiwan’s electronics microcosm.

As well as outsourcing to TSMC, AMD decided that its friends in Formosa are trustworthy for packaging and contracting, and has awarded them contracts. Nanya, which does all sorts but especially DRAM, is expected to take an unmarked brown envelope from AMD too, through its partner in Japan NGK Spark Plug.

TAITRA will be pleased.

As competition ramps up and AMD is set for small victories, it looks like the winners will be the whole supply chain, not just AMD.

* But while it’s good news for TSMC, mainland foundry SMIC managed to lose its chief operating officer yesterday. SMIC has waved goodbye to its CEO, just a few weeks ago. SMIC isn’t doing that brilliantly.