X-bit Labs: IBM Quietly Starts to Make Chips for AMD

[notty22]

IBM Quietly Starts to Make Chips for AMD.

Advanced Micro Devices has disclosed at an analyst event that it had begun manufacturing of its chips at IBM's facilities. The partnership is believed to ensure AMD's ability to supply its next-generation A-series Fusion chips code-named "Trinity" to PC makers and be in position to compete against Intel Corp.'s Core i-series future products.
"We win together, we have partnership in good times and in difficult times. What we are seeing is a focus on execution running test chips through the [production] line to gather the data [...] with partners from IBM and Globalfoundries," said Rory Read, chief executive officer of AMD.
Officially, AMD produces its central processing unit (CPUs) exclusively at Globalfoundries (GF), a contract manufacturer of semiconductors controlled by an Abu Dhabi-based financial organization called ATIC and AMD. The chip designer complained throughout 2011 about low production yield at Globalfoundries and even signed an agreement under which it paid GF on per working chips basis, not on per wafer basis.

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Production of chips at IBM facilities means a number of things, the most important of which is increased ability to compete in terms of volume with Intel. While Intel runs more than five leading-edge semiconductor making fabs across the world and those facilities by definition can produce times more chips than IBM and GF combined, it is clear that added manufacturing capacity will be good for AMD.
For a number of times AMD noted about better availability of Trinity APU compared without elaboration. Apparently, better availability is conditioned by adding a new manufacturing facility as well as improved design of the chip itself.
According to performance benchmarks conducted by AMD, the Trinity 35W APU with Piledriver-class x86 cores will provide 25% better x86 performance compared to Llano 35W (with K10.5+ "Husky" x86 cores) based on results obtained in PC Mark Vantage Productivity benchmark. AMD also claims that Trinity 35W will offer up to 50% better result in 3D Mark Vantage performance benchmark compared to Llano 35W.

 

[RavenSEAL]

Damn it, they need to make Piledriver at IBMs facilities too.

 

[busydude]

Officially, AMD produces its central processing unit (CPUs) exclusively at Globalfoundries (GF), a contract manufacturer of semiconductors controlled by an Abu Dhabi-based financial organization called ATIC and AMD.

Huh?

TSMC manufactures Brazos, and it has a CPU in it.

 

[janas19]

Guys, I may be out of the loop here but I dont get this at all.

A. Thought IBM was did consulting and business services stuff.

B. If AMD outsources it's fabrication to IBM, what are they selling exactly?

 

[Idontcare]

This makes no sense to me. If there is one place on this planet you will find 32nm yields and cycle-time numbers to be worse than GloFo's it is in Fishkill

 

[ThatsABigOne]

This makes no sense to me. If there is one place on this planet you will find 32nm yields and cycle-time numbers to be worse than GloFo's it is in Fishkill

Haha, my thought as well!

 

[ElFenix]

Guys, I may be out of the loop here but I dont get this at all.

A. Thought IBM was did consulting and business services stuff.

B. If AMD outsources it's fabrication to IBM, what are they selling exactly?

AMD is fabless. they design it, someone else manufactures it.

 

[nyker96]

always thought ibm has a pretty advanced manufacturing facilities, but from above posts doesn't seem to be. If nothing else maybe amd just looking for more partners to boost volumn since their APUs is selling well.

 

[Joseph F]

AMD is fabless. they design it, someone else manufactures it.

Well, sort of. Doesn't AMD own half of GloFo?

 

[RavenSEAL]

Well, sort of. Doesn't AMD own half of GloFo?

Too bad the whole thing is a mess anyways, they need to let either IBM or TSMC handle PD fabrication to avoid the BS.

 

[dma0991]

I wonder how well BD would have turned out if it was made based on TSMC's process. Their 40nm was great for Bobcat and 28nm did wonders for the HD7000 series.

 

[BD231]

Volume is one thing but does anyone know of a FAB that can actually compete with Intel's process quality? Does one even exist?

 

[Lonyo]

This makes no sense to me. If there is one place on this planet you will find 32nm yields and cycle-time numbers to be worse than GloFo's it is in Fishkill

Maybe IBM went crazy and let them do a per-chip deal like with GloFo.
Or they are desperate.

 

[T_Yamamoto]

hm, i should ask my dad.

he works at ibm

 

[podspi]

always thought ibm has a pretty advanced manufacturing facilities, but from above posts doesn't seem to be. If nothing else maybe amd just looking for more partners to boost volumn since their APUs is selling well.

I was always under the impression that IBM DOES have pretty advanced manufacturing facilities, but they aren't terribly concerned with things like yields.

Maybe IDC could weigh in on this?

 

[Jionix]

It might possibly have to do with the next X-Box.

 

[Ferzerp]

Intel's game is fab well, and make processors cheap (except the extreme top end). IBM charges an arm and a leg for most of their procs, so low yields would be less of an issue for them (thought I have no knowledge about if they have good or bad yields).

 

[CHADBOGA]

Well, sort of. Doesn't AMD own half of GloFo?

Whatever AMD's initial ownership share of GF was, it has been whittled down consistently over the months and years since.

I think AMD are now down to about 12% and forecast to go to 0% within 2 years or less.

 

[blckgrffn]

Even if this thing with IBM isn't the greatest, at least AMD can be a bit more nimble now. When they owned their own fabs I wonder if internal politics would have hindered this kind of reaching out (whether it is for capacity, performance, cost, technology, whatever.)

They (AMD) should have decent sell through capacity (ie, they sell a lot of chips) to offer to any Fab who can provide them with sufficient value, whether that comes from low wafer costs or more cutting edge technology enabling better performance/lower power consumption/etc.

Any chance they could get someone like Samsung in the game? Samsung does Fab ARM chips now, right? A wafer is a wafer?

 

[soccerballtux]

It might possibly have to do with the next X-Box.

eh, going to have to say not likely...

 

[VirtualLarry]

A wafer is a wafer?

Not if it's fabricated on a different process. Every FAB has a different process, and designed have to be "optimized" for that particular fab process, in order to yield.

 

[thilanliyan]

eh, going to have to say not likely...

Why do you say that?

 

[Cerb]

Guys, I may be out of the loop here but I dont get this at all.

A. Thought IBM was did consulting and business services stuff.

They do. They also still design and make chips.

B. If AMD outsources it's fabrication to IBM, what are they selling exactly?

Microprocessors that they designed. It's not like this is the first time AMD has outsourced their chips, even to IBM (I believe IBM made K8 CPUs back when AMD was supply-constrained, didn't they?). The difference now is that all of their chips are outsourced.

Why do you say that?

Because MS already had an x86 Xbox, and the mire of x86 IP was a problem that the current IBM/ATI doesn't have, and there is no good reason for them to go back to not controlling the design.

 

[Riek]

no they don't. AMD is fabbing trinity in GF.

 

[Borealis7]

IBM has recently announced the discovery of a 9nm option so perhaps this is an investment in the future of the fabbing possibilities.