AMD has revised its revenue projections for the third quarter ending October 1, citing issues with 32nm chip production at its German Foundry. The second largest PC chip manufacturer now expects its revenue to increase by 4-6% on top of their second quarter earnings, down from the 10% they forecasted earlier in the year. In response to the news, shares fell by 7.8% to $5.88 during extended trading yesterday.
Besides the yield issue with 32nm chips, AMD commented that its 45nm chip supply was also having problems as the two processes share some common tools in manufacturing.
The Dresden based manufacturing firm GlobalFoundries, in which AMD has an 11% stake, is used for the company's manufacturing operations. Poor yield of chips due to production problems appears to be the biggest issue for the chipmaker. The plant is "throwing substantial resources at improving yields," said Drew Prairie, a spokesperson for AMD. The company says they're seeing progress, but quite how much remains unclear.
These production problems have led to a shortage of "Llano" fusion chips for mainstream computers, and have caused delays to the shipping of new server-grade 16 core Opteron "Interlagos" CPUs, which will further affect sales margins.
These latest news will do little to quash the concerns of many enthusiasts growing steadily impatient at the continuous delays to Bulldozer CPUs, which are not expected until mid-October. Rumors are beginning to appear hinting at an October 12 release date but many will be concerned whether AMD can keep up with demand.