During its Q2 2011 earnings conference, AMD’s interim-CEO Thomas Seifert revealed that AMD already has working samples of GPUs using a 28nm fabrication process. AMD claims it is on track to introduce a revamped lineup of GPUs codenamed “Southen Islands” using the new process later this year. AMD expects to lead the graphic processor industry’s transition to the 28nm process.

AMD has tapped both Globalfoundries and TSMC to manufacture the new GPUs on their 28nm process. But since both the processes are vastly different, AMD would need independent GPU designs for each foundry. In spite of the risks, the cost savings from moving to the 28nm process should be significant, assuming good yields. Considering AMD’s GPU business lost $7 million this quarter, this is definitely good news.

It’s always a gamble to design complex GPUs on a cutting-edge process; Nvidia learnt it the hard way with the Geforce FX Series (NV30) back in the day when it was manufactured on the 130nm process. Let’s hope AMD has a better luck.

Source: AMD Q2 2011 Earnings Conference via Xbit Labs

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  • Mr Perfect - Friday, July 29, 2011 - link

    Probably a combination of things: expenses where to high and that great price/performance ratio(for us) means a low margin for them.
  • mino - Friday, July 29, 2011 - link

    Tax "optimization" coupled to high investment-to-turnover ratio. Has pretty much nothing to do with unit's performance as the article is trying to suggest.
  • BSMonitor - Monday, August 1, 2011 - link

    If they lead in sales, and are losing money.. Means they are not charging enough to cover their expenses.

    Price/Performance is great until you have to make a profit.
  • mino - Friday, July 29, 2011 - link

    It was Charlie who broke this couple weeks ago. But yeah, AMD prolly decided to confirm given the word was on the street ...
  • minijedimaster - Saturday, July 30, 2011 - link

    I wonder why they are still using TSMC for manufacturing their chips? Is it that Global Foundries still doesn't have the capacity to handle the entire GPU lineup? I would assume it would be much more cost effective to use only Global Foundries to manufacture the chips. Isn't GF's building a new FAB in New York? Wonder what that status is on that...
  • minijedimaster - Saturday, July 30, 2011 - link

    Hmmm... so sounds like about a year out for production equipment to be installed and working for phase 1 of the new fab in new york.

  • austonia - Friday, August 5, 2011 - link

    using an HD 5850 for almost 2 years now.. waiting on new 28nm chips to upgrade.

    looks like they won't make it before Skyrim hits :(

    hurry up guys and i'll buy your stuffs :)

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