IBM to help AMD with chip production

Advanced Micro Devices has issued a terse statement saying that it has signed a two-year foundry agreement with IBM. The agreement will 'somewhat augment' AMD's capacity from its Fab 25 in Austin, Texas, for the production of K6 processors, the company said in its statement. AMD said that wafer production at IBM will commence during the third quarter of 1998.

Advanced Micro Devices has issued a terse statement saying that it has signed a two-year foundry agreement with IBM.

The agreement will "somewhat augment" AMD's capacity from its Fab 25 in Austin, Texas, for the production of K6 processors, the company said in its statement. AMD said that wafer production at IBM will commence during the third quarter of 1998.

Earlier this week, AMD said that difficulties in production have forced it to lower its forecast for this year's shipments of the flagship K6 processors by some 20 percent. The chip vendor now expects to ship only 12 million of those chips this year.

AMD, based in Sunnyvale, California, can be reached at http://www.amd.com/.

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