Motherboard makers predict that AMD will retain production of the CPU portion of its Fusion processor at its own fabs or that of Chartered Semiconductor until at least 2009, with Taiwan Semiconductor Manufacturing Company (TSMC) to produce the graphics processor unit (GPU) portion of the processor.AMD's Fusion processor will consist of a GPU manufactured on a 55nm process by TSMC plus a silicon-on-insulator (SOI-) based CPU manufactured on a 45nm process at AMD's Fab 36 and Fab 38 or outsourced to Chartered. A packaging and testing plant will then package the CPU and GPU together as a Fusion processor.
AMD is pushing its "asset light" FlexFab plan in cooperation with Chartered, TSMC and UMC to separate the supply risk. Some motherboard makers think that AMD will increase outsourcing of production to counter pricing competition from Intel. AMD's CPU and GPU products are already being produced on a 65nm process and the company is preparing to enter mass production of GPUs on 55nm while 45nm CPU and GPU products will enter mass production in 2008. The company plans to introduce a 32nm process in 2009 and start mass production in 2010 with plans to introduce a 22nm process in 2011.