According to the latest information,Advanced Micro Devices (AMD) announced a reduction in its revenueprojection on Wednesday. According to the company, this is being doneas a result of yield problems in the third fiscal quarter endingOct.1.

AMD is expecting its revenue toincrease from 4 percent to 6 percent as compared to that in thesecond quarter. It has shown a rapid decrease in comparison to itsearlier projection of 10 percent increase, plus or minus 2 percent.
As announced by AMD, chip fab inDresden, Germany which is operated by AMD partners, Globalfoundrieshave shown dissatisfaction with the chips manufactured using 32-nmprocess. This is why the supply of AMD's “Llano” Fusion chips formainstream PCs has been limited.

Adding to the problem, the AMD’s16-core Opteron server processor whose code name is “Interlagos”which is exclusively designed with 32-nm process was shipped at alater date than originally planned. This is why the servers based onInterlagos are now expected to be shipped in the fourth quarter.

Manufacturing assets of AMD were givento Globalfoundries in 2009, but still both the companies are workingin close association for chip manufacturing. AMD has a stake of about11% in Globalfoundries.

In addition, AMD is utilizing TaiwanSemiconductor Manufacturing Co. (TSMC) to develop its first Fusionprocessor. These processors are available in E and C series fornetbooks using the 40-nanaometer process. Besides, offering a helpinghand in developing Fusion processors, TSMC is also developing graphicprocessors for Advanced Micro Devices (AMD).

In the second calendar quarter themicroprocessor market share of AMD grew to 19.4%. However, it was amarked increase from 17.8% of the same quarter in 2010. This has beenrevealed by Mercury’s research. Originally, the Intel’s share wasjust 79.9%. The new fiscal third-quarter results of AMD are due torelease after Oct. 27.