Oct 15, 2015 05:51 PM EDT

AMD Dragged Down By Slow CPU Sales

AMD is struggling. The semiconductor and chip maker is reportedly having a hard time while the PC industry is experiencing a continuous downturn.

According to PCWorld, the Sunnyvale, California-based company has announced a wider loss than what it expected for its third quarter.

The revenue loss of the company has amounted to $197 million as the sales of CPU and GPU plummeted in the recent months. This is a huge slap to the company that managed to earn a profit of up to $17 million last year. 

However, the company saw an increment on its sales of semi-custom chips for consoles, as per Venture Beat. Plus, the reported loss is actually higher than what analysts had expected.

Amid the losses of the company, it  also lost its valuable "Zen" chip architect Jim Keller and computing strategist Phil Rogers, who is now working for rival Nvidia and doing great in leading the company's server business. 

AMD has said that it is now expecting its revenue to fall by 10 percent in the fourth quarter because of seasonal decline in semi-custom chips.

Despite the depressing figures, the company has engaged in a $436 million deal with Nantong Fujitsu Microelectronics (NFME) to make an Assembly, Test, Mark and Pack (ATMP) joint venture. 

NFME will own 85 percent of the venture and is paying AMD $371 million by contributing 1,700 employees and two test factories to the joint venture deal that is closing in the first half of 2016.

The two facilities that will be purchased by NFME from AMD are the ones located in Penang, Malaysia and Suzhou, China, according to Reuters

Though the facilities involved in the venture will not undergo through reduced workforce, AMD is expected to cut about 500 jobs on its global manpower, staying true to what it announced early this month.

Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics