AMD issues revenue warning after lower APU sales

AMD has revised its revenue forecast downwards. The chip designer expects lower sales than previously reported due to disappointing APU sales through manufacturers’ computers. In addition, AMD reports a one-time write-off of millions in connection with the switch to finfets.

Revenue in the second quarter was 8 percent lower than in the previous quarter, AMD reports. AMD previously reported a 3 percent drop in revenue. “The sequential decline is primarily attributable to lower-than-expected demand for consumer PCs, which is impacting APU sales for OEMs,” AMD writes. The company does not say anything about the individual APU sales or the video card deliveries. The chip designer will announce the final figures on July 16.

AMD also says that it will write off 33 million dollars, converted 30 million euros. This has to do with the transition from the 20nm production process to a finfet node. AMD says it has started production of several chips at 20nm, which are now making the switch to finfet. The switch to the 14nm finfet process makes production cheaper for AMD and the chips are also more economical. Intel is already producing the Broadwell generation at 14nm and will soon unveil the Skylake platform at 14nm. AMD uses the 14nm production of GlobalFoundries, which is making the switch to the finfet process together with Samsung.