One of the most popular chips maker, Advanced Micro Devices Inc (AMD) is currently suffering from a shortage of its newly developed 40-nanometer graphics processing units. This delay in the production of AMD chips is taking its tolls on the computer vendors who are forced to delay shipments and deliveries.

The AMD 5800 series, 40-nm GPUs (graphics processing units) are manufactured by Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) and the company is facing a speedy development concern, despite of the fact that, the manufacturing is completely online and is working absolutely fine. TSMC is known to be the world’s biggest contract chip maker and is located in Hsinchu Science Park in Hsinchu, Taiwan. According to Matt Davis (Spokesman, AMD),

“The design is sound. It’s just a matter of trying to get TSMC to a point where they can yield. They’re feeling the manufacturing crunch. We’re a little bitter under yield but we’re working back into a manufacturing schedule we want for these parts. TSMC can only kick them out so fast at this point.”

The main reason for the under productivity on the part of TSMC is yet uncertain, but AMD hopes that, the foundry can get the productivity up to speed soon

As per the analysis of Jim McGregor of In-Stat, the PC vendors who have been waiting to get their hands on the AMD processor chips so they can dispatch the computers for their scheduled deliveries aren’t going to wait around for long and will definitely turn to the next processor provider who can meet their schedules on time. Speaking on the current TSMC situation, Mr. McGregor said,

“They (TSMC) haven’t been producing these chips for long, so you’d expect some ramp issues. AMD is being affected because these are great parts and they’re getting a lot of demand. They’re getting a huge swing on this. When you have more demand for a product than expected and lower yields than expected, you get the perfect storm.”

Via Computer World.