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AMD Cutting CPU Production

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AMD Cutting CPU Production

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:

2845 2339449 00.asp?kc=ETRSS02129TX1K0000532 ExtremeTech.

Keithe6e

January 26, 2009, 3:25 pm

Oh dear, bad move AMD. Supply and demand of course effects prices, but this could just end up giving Intel a free lunch, unless of course Intel follow suite. Risky move I would say.

Peter

January 26, 2009, 4:06 pm

Didn't AMD go fabless ?

Hugo

January 26, 2009, 5:14 pm

What have fabs got to do with how many CPUs it makes? AMD just puts in less orders.

smc8788

January 26, 2009, 6:29 pm

Not really surprising considering they current economic climate (which reminds me, when will people stop referring to the 'credit crunch' and start calling it a recession?) and that they haven't been competing with Intel for a while now, both on performance and price.

smc8788

January 26, 2009, 7:08 pm

Although if people keep trying this, they'll have to up the orders!





http://uk.youtube.com/watch?v=...






Keithe6e

January 26, 2009, 7:47 pm

@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 Crunch (the ability to get credit is very hard), and yes were in a Recession, (2 quarters of negative growth). Just because were in a Recession doesn't mean were no longer in a Credit Crunch, although Gordon is trying his hardest to get rid of the CC, at the tax payers expense of course.

ilovethemonkeyhead

January 26, 2009, 8:03 pm

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

smc8788

January 26, 2009, 8:12 pm

@ Keith,





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

Keithe6e

January 27, 2009, 7:11 pm

@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 could you.


The thing that narks me is that how the government pretends helping the banks protected people with mortgages, WHY? eh, don't get that one Gordon, all they had to do was protect savers, and then let the banks burn in there own mess.

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