AMD admits processor shortages


— 9:17 AM on November 6, 2006

Reports arose last month that, due in part to demand from Dell, AMD was unable to supply the distribution channel with enough chips. Dell later responded by saying it had a "bountiful" supply of chips from AMD, but the chipmaker itself never issued an official statement. The folks at Computer Reseller News have now finally squeezed a statement out of the company:

In a prepared statement for CRN, AMD acknowledged the shortage but declined to discuss its allocation guidelines or channel strategy. A spokesman attributed the problem to a strain on supply as overall demand increases from both system builders and top OEMs.
According to a Goldman Sachs analyst quoted by the same site, AMD's Socket AM2 desktop processors are in tight supply because AMD switched some of its production capacity to mobile chips and allocated more processors to PC makers. The focus on notebook chip capacity makes sense considering Dell launched its first AMD-based notebook five days ago. Other companies are less than happy about AMD's priorities, though, with some quoted as saying that AMD is effectively "divorcing" the channel. Thanks to The Inquirer for the tip.
   
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