Taking another step towards perhaps becoming a fabless chip firm, AMD will apparently be outsourcing its CPU production to Taiwan Semiconductor Manufacturing Company (TSMC), by the second part of 2008. The move was not discussed in AMD’s last investor conference, but Digitimes reports that industry sources claim that testing is already well underway down at TSMC for Silicon on Insulator (SOI) manufacturing. SOI production would be essential in order for TSMC to get a deal allowing it to manufacture AMD fusion CPUs. TSMC already manufactures a significant majority of AMD chips, and this latest move could mean another step towards becoming “asset smart”, whereby AMD would eventually become semi-fabless, saving vital cash currently spent on operating costs. But after such a disastrous year for the chipmaker, the company is really trying to do all it can in order to become profitable again by mid 2009, as well as to attempt to recapture some 30 per cent of the global market share, which just might put the company back in the game.

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