IT House May 9 news, sources previously said that AMD is expected to launch a new generation of processors manufactured using TSMC’s 5nm process technology as early as September.
DigiTimes reported that AMD has launched a series of 6nm CPU and GPU products since 2022, with TSMC as its sole foundry partner. Sources believe that AMD is expected to launch a new generation of 5nm processors later this year due to its close cooperation with TSMC.
Contracting TSMC to produce flagship processors has already played an active role in AMD’s battle against rivals such as Intel and Nvidia, the sources said. Since 2019, AMD has increased its share of the notebook, desktop and server processor market.
In response, AMD, Intel, and Nvidia all had to adjust and revise their strategies and product roadmaps in response to the rising competitiveness of several others, such as seizing TSMC’s advanced process capacity to manufacture their 5nm and below products.
It was previously reported that Nvidia used more than $10 billion to ask TSMC to provide 5nm and below process products for its upcoming GPU, thereby abandoning Samsung’s 8nm.
According to AMD’s quarterly report on 10-q10, the company must pay suppliers a total of $6.5 billion in advance payments for the remainder of the year, including TSMC, GlobalFoundries, and others.
IT House learned that Nvidia had previously released a similar public statement, which aroused public interest. Over the past six months, Nvidia has paid suppliers about $3.4 billion upfront to provide itself with the necessary parts and related raw materials for production jobs.
Even in the context of a global shortage of cores for some time to come, this is a very exaggerated payment growth. In contrast, AMD plans to prepay no more than $1.9 billion next year, and it will start to be priced in “billions” after 2024.
Obviously, due to the expiration of the agreement with GlobalFoundries, AMD’s future payments to the supplier will be significantly reduced.
Secondly, AMD is investing this year to increase its product line and supply, which requires more services from TSMC, and therefore will bear higher production costs, as well as the cost of purchasing wafers, substrates and other materials.
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