AMD Faces 32nm Challenge; Cuts Q3 Revenue Forecast

By Douglas Perry
published

AMD reduced its revenue growth expectations for the third quarter by about 50 percent, stating that it has been affected by "manufacturing issues" at Globalfoundries.

The company said that it expects its revenue to climb by about 4 to 6 percent in the third quarter, which is down from a previous 10 percent sequential growth estimate. There is nothing wrong with demand; rather, it was manufacturing issues at Globalfoundries that impacted the yield of 32 nm Llano processors that are blamed for the revenue downfall.

The company also noted that 45 nm supply of Llano processors was less than expected, due to "complexities related to the use of common tools across both technology nodes." As a result, the shortage put AMD's average selling prices and margin under pressure.

In addition, AMD's 16-core Interlagos (Opteron 6200) server processor began shipping later than planned. Investors reacted almost immediately and sent AMD's stock down more 15 percent to $5.20. AMD's market capitalization dropped to just $3.59 billion.

Douglas Perry
38 Comments Comment from the forums
  • aftcomet
    So now AMD is having the supply problem that Intel previously had this year?
    Reply
  • DjEaZy
    ...i wanna Llano laptop... no wonder they are hard to find...
    Reply
  • iam2thecrowe
    great, so they will release bulldozer and sell out on the first day because they don't have enough of them.
    Reply
  • The Greater Good
    For the love of God, AMD! Get it together! Smack some bitches at Globalfoundries.
    Reply
  • darkguset
    THe Interlagos have been out for some time now... how come we don't see enough benchmarks? Are people bored, they don't have any time or no one has bought any yet?
    Reply
  • dragonsqrrl
    darkgusetTHe Interlagos have been out for some time now... how come we don't see enough benchmarks? Are people bored, they don't have any time or no one has bought any yet??... Interlagos hasn't launched yet, but from what I've heard it's taking priority over FX and Opteron 4200 series processors, so we should see them soon.
    Reply
  • jdwii
    I want to see bulldozer i hope they will release in the middle of October like that guy from Amd said. I hate GF they suck if only Amd could use TSMC for their dozer's then they could also be made in 28nm die. We would of seen the bulldozer back in june if it was not for GF.
    Reply
  • SteelCity1981
    You, you made me log in just to reply to you.

    Maybe you should have stayed logged off after that rant.
    Reply
  • alyoshka
    Looks like the prices are going to go up :(
    Reply
  • silverblue
    Hiniberus1) Architectural problems, we're actually getting B1 stepping because B0 had some problems which was the June date.
    We're actually getting B2s, with another stepping due early next year.
    Reply