AMD's actual chip production may not be enough

Nov 13, 2006 15:13 GMT  ·  By

It seems that Sunnyvale is not that "sunny" anymore. In a recent report, AMD has released some worrying information about an incipient chip shortage that could last for a while. Although everyone points the finger at Dell, AMD officials said that: "Dell is really not a factor," and "hasn't really had much of an impact yet."

The main reason for the shortage is, according to AMD's Consumer Channel VP Stephen DiFranco, the demand that it's constantly outrunning supply keeping all CPU stocks empty. At the same time, there's an increase in energy efficient CPUs on the market and that makes things even more complicated for AMD since 35W X2 CPUs are nowhere to be seen on the shelves of suppliers for almost two months.

"Typically, the channel prefers a lot of inventory in December. This year we have seen demand spike earlier than anticipated, and our engineering inventory has been off," said DiFranco.

Concerning the fact that some AMD clients may cross over the edge and buy INTEL products, DiFranco replied: "We don't expect our users to jump brand. Their loyalty comes from many years of dedication, and they're a sophisticated group. We think they will stay loyal over the long term; they're better served by sticking with AMD technology."