Chip maker AMD is rumoured to be having a few problems with its 28nm Accelerated Processing Unit (APU) products - to the point where it has been forced to cancel production at GlobalFoundries in favour of a fresh start with TSMC.
A report over on ExtremeTech - as yet unsubstantiated by AMD, which as per usual "does not comment on rumour or speculation" - points the finger at manufacturing difficulties, which are said to have killed off the planned Krishna and Wichita Brazos-based APU chips.
If true, it's a massive blow for GlobalFoundries: the company was once AMD's own fabrication division, before being spun out into a distinct company as AMD chose to go fabless to help reduce internal costs. To be shunned by its own parent will be a crushing blow in an extremely competitive market.
AMD doesn't come out unscathed, either: scrapping the existing 28nm parts - as it must, if it wants to switch to TSMC, which uses gate-last manufacturing rather than the gate-first method favoured by GlobalFoundries - will mean a big delay, giving Intel time to further entrench itself in AMD's target markets.
With AMD's latest Bulldozer-based server chips receiving lukewarm reviews, and Intel attacking it with increasing quantities of cheap low-end chips and premium high-performance products, things aren't looking great for the underdog.
AMD refused to comment on the rumour, while both GlobalFoundries and TSMC have yet to respond to our request for comment on the matter.