AMD’s PS4 and Xbox One’s APUs’ Chips will be Manufactured by a New Foundry – Company is Pleased With Console Sales

Like almost all other gadgets, PlayStation 4 and Xbox One video game consoles are also made up of several crucial and effective shards of hardware. Three most important parts in the latest consoles are RAM, GPU and CPU and last two of these are developed by a chip development company known as AMD and manufactured by some foundries associated with the company.

AMD's New Associate Manufacturer will Craft PS4 and Xbox One's APUs' Chips This year - Company is Pleased With Console Sales

AMD develops and provides Sony and Microsoft with system chips that power the manufacturers' latest video game consoles. These chips are designed by AMD and are manufactured at a certain foundry connected to the company. According to a new report, the foundry where chips for PlayStation 4 and Xbox One are manufactured is being switched.

AMD spoke about the new foundry at its quarterly earnings conference call which was meant to disclose the company's profits and losses for the first fiscal quarter of 2014. The chip maker talked about how the latest consoles gave a boost to its earnings and gave some noteworthy information about the chips that give dominance to both PlayStation 4 and Xbox One consoles.

General Manager of Global Business Units, Lisa Su, told that the task of manufacturing PlayStation 4 and Xbox One chips has been assigned to a new semiconductor foundry known as GlobalFoundries and the chips manufactured by the new foundry will start shipping to Sony and Microsoft for latest consoles in second half of this year.

The new manufacturer of the chips will apparently not arrange any discounts and cost reductions for AMD itself. This probably means that Sony and Microsoft will also be given no price cut and they will pay the same for chips that serve as hearts for both the latest consoles.

Lisa also said that the consoles and chips that came out in the latest quarter following the holidays season have shown some seasonality in the performance but the sales results have still been great and AMD is quite satisfied with the situation. The chip maker wants to improve revenue even more and is trying boost up the sales of the new chips for PlayStation 4 and Xbox One in the second half of this year.

"We see that the consoles are selling through nicely," says AMD.

AMD's new manufacturing associate, GlobalFoundries, will also take the manufacturing of at least a part of the semiconductors for latest consoles to Singapore, Dresden, Germany and Saratoga County, NY, USA. Taiwan-based foundry called Taiwan Semiconductor Manufacturing Company (abbreviated TSMC) was previously responsible for production of the chips.

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