AMD's launch of its next-generation 45nm Phenom II processors might provide the Sunnyvale, California-based chip maker with a considerable share growth in the channel market in the first half of 2009. According to a recent news-article on
Digitimes, citing industry sources, the chip maker will see a 30% channel market growth for its motherboard platforms. The increase will largely be due to the company's latest generation of computer processors, which provide a better performance than the company's first-generation Phenom processors.
Another factor that adds up to the reasons for which AMD's share of the platforms in the channel market is expected to grow is represented by the fact that the company's latest CPUs are supported by both the mainstream AM2+ sockets, but also by the AM3-enabled motherboards. AM2+ platforms are expected to remain the mainstream alternative, as they provide support for DDR2 memory, a solution that is more affordable than the next-generation of DDR3 memory, supported by AM3 platforms.
If these prospects materialize, it should be good news for AMD, which last year saw a CPU market share of 24.7%, compared with the 74% recorded by Intel, according to a recent report by market tracker Mercury Research. Also, the Sunnyvale, California-based chip maker will have to provide new processors that can compete with Intel's more affordable Nehalem-based Core i5 CPUs, expected to be released in the third quarter of this year.
AMD will also have to increase its processor output, in order to keep up with the demand. However, according to a recent statement on the part of the company's CEO, AMD has plans to reduce its manufacturing output, in an attempt to reduce costs and become more competitive in the market. “We are reducing our manufacturing output to keep inventories down, while completing our transition to 45nm technology and developing 32nm technology consistent with our plans,” said Derrick Meyer, chief executive officer and president of Advanced Micro Devices.