Earlier this week, AMD corporate fellow and president of the Heterogenous System Architecture Foundation Phil Rogers, left the company to join rival GPU manufacturer NVIDIA after 21 years of service.
And then things got even worse for AMD, when the company revealed its quarterly financial results.
Yesterday AMD revealed that it had run at a loss for the fourth quarter in a row, stating that this quarter had seen the chip manufacturer losing $197 million (R2 billion), bringing total losses over nine months to $557 million (R7 billion).
In a report by Ars Technica, it was also stated that AMD used the quarterly earnings announcement to unveil a new joint venture with China-based Nantong Fujitsu Microelectronics. The venture will see Nantong Fujitsu Microelectronics using two AMD facilities it has an 85% share in, located in Penang, Malaysia and in Suzhou, China to assemble and test AMD products.
According to reports, this deal should net AMD approximately $371 million. But is it enough?
The graph above shows the annual net income of Intel, AMD and NVIDIA since 2010.
As you can see, despite a strong position against NVIDIA back in 2010, AMD has lost income year on year, except for 2012 when it earned upwards of $1.8 billion thanks in part to the release of the AMD FX 8350 CPU that went on to set world records at overclocking competitions.
With additional losses now being reported, it will be interesting to see what AMD does from here on out, especially since it cannot compete with the billion dollar business figures from Intel or out-earn NVIDIA.
Clearly, AMD is going to have to do something drastic soon to keep its head above water.[Source – Ars Technica, Image – AMD]