With AMD reporting huge losses for the fourth quarter of 2006, motherboard makers in Taiwan say the US chipmaker has plunged to its lowest point, and may not regain its competitive edge until the launch of the Socket AM2+ platform and K8L architecture based CPUs in the third quarter 2007.
AMD used to be highly competitive in the markets for clone systems, servers and high-end gaming. But in 2006, AMD met with a strong challenge from Intel's Core 2 Duo on the desktop. Intel's dual-core Xeon 5100 was a strong competitor for AMD's Opteron, while Intel's quad-core Xeon 5300 also grabbed much of the server market.
According to the motherboard makers, AMD will have no major 64-bit dual-core processors unveiled in the first half of 2007. Processors based on AMD's new K8L architecture, which are currently known by the codenames Agena FX (quad-core), Agena (high-end dual-core), and Kuma (mid-range dual-core), will not hit the market until the third quarter 2007.
AMD will have to accelerate its migration to the 65nm node so as to cut costs and increase output, or it may plunge further down if Intel resorts to even fiercer pricing campaigns
Has AMD bitten off more than it can chew? Will the K8L architecture be their saving grace? Feel free to discuss this article in our forum