Advanced Micro Devices, Inc. (NYSE:AMD)’s Chief Executive in a bid to trim costs said that they are not interested in Low-Volume Customers. Because to switch in certain low-volume deals, requires to invest into implementation of its products.
According to chip maker’s CEO, such approach will leads to a significant decrease of market share, it naturally means leaner financial structure of the whole company.
The importance of design matters a lot, because not all design wins and are created equal. AMD’s CEO said about design that “more is not better”. More equals to more complexity, when it come to its back-end costs or testing any platforms, that will drive more cost for company.
Chief executive of Advanced Mice Devices, Rory Read said at Credit Suisse technology conference in late November that design is very significant every design has associated cost with testing, putting on the platform, etc.
Company has recently did restructuring in its organization aimed to reduce cost with the policy of cutting implementation and other costs of operating expenses from circa $610 million to about $450 million per quarter this year. Struggling chip maker raised $160 million in cash is a significant amount of money.
Company reduced its manufacturing costs in many ways, which causes its market share to slump. Nvidia Corp. was widely criticized as pumped up OpEx due to implementation costs and other manufacturing cost which it faced during the Kepler GPU family ramp up.
Nvidia now become the No. 1 supplier of notebook GPUs because of AMD’s unwillingness to help integrate its Radeon Mobility products based on the recent architecture.
CEO Mr. Read also raised his concerns about the production technologies used by AMD. Advanced Micro Devices, Inc. (NYSE:AMD) used up to nine different process technologies in its vast production line with two of its partners. He actually wants AMD to only use two process technologies to reduce the number of metal layers that contain logic elements within microprocessors to “industry standard” levels, which means more compromises in performance.
Advanced Micro Devices, Inc. (NYSE:AMD)’s chief executive believes in more speedy execution in production process, and waiting for the moment when his company is able to quickly develop a chip solution to address market needs. So far, this strategy has been delayed as the company had decided from late 2013 to late 2014, the roll-out of its next-generation Steamroller micro-architecture-based central processing units further.