AMD Cutting CPU Production

Author Hugo Jobling
Published 26th Jan 2009
AMD Cutting CPU Production
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If you read our recent Phenom II X4 940 Black Edition review and fancied one for yourself then now might be the time to purchase because word has it that AMD is planning to cut its CPU production. According to ExtremeTech, the plan is to reduce the number of 'unwanted' chips floating around.


The aim is that by temporarily slowing processor production, AMD will avoid an oversupply of inventory at a time when sales are slowing anyway. Production will then be resumed once demand peaks back above availability.

As AMD's chief financial officer, Rob Rivet, put it: "We're slowing everything down quite a bit". AMD CEO, Dirk Meyer, echoed Rivet's sentiments, explaining: "we think our CPU sales out of AMD will be less than consumption… our inventories will drain in Q1 - we'll clearly be manufacturing below our shipment level."

Whether these supply reductions will be universally applied, or in specific areas is unclear. Both Rivet and Meyer hinted that oversupply was greatest in the notebook sector, but shutting down productions across-the-board could well be the most financially beneficial option for the company.

Link:
ExtremeTech.

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comment Keith said on 26th January 2009

@smc8788: when will people stop referring to the 'credit crunch' and start calling it a recession?)

Well, there both separate things, yes were in a Credit... more

comment ilovethemonkeyhead said on 26th January 2009

... by giving our money straight to banks - in the vain hope they'll loan us back our money.

comment smc8788 said on 26th January 2009

@ Keith,

I didn't phrase that very well, I meant people often use the terms interchangeably, as if they do mean the same thing.

comment Keith said on 27th January 2009

@ilovethemonkeyhead: .. by giving our money straight to banks - in the vain hope they'll loan us back our money.

Hehe, yeah, you really couldn't make it up... more

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