Updates to this story
AMD has announced a range of contracts with TSMC. According to Taiwan Economic News the contracts will help TSMC achieve the high $3.6 billion revenue goal for this quarter.
At a recent roadmap conference, the company said it had contracted TSMC to build its 40-nanometer Ontario and Zacate accelerated processing units. It will also outsource the production of its 28nm Krishna and Wichita APUs to TSMC, with the two chips designed to replace Ontario and Zacate when they are introduced in 2012.
Ontario and Zacate, which AMD has begun shipping to contract PC makers, are designed for low-end and middle-range PCs. They have one to four cores on a single die, and support the DirectX 11 graphic format and USB 3.0 transmission interface.
TSMC has also been signed up for AMD's Northern Islands chips, Barts-coded Radeon HD 6850/6870 chips, and Cayman-coded Radeon HD 6950/6970 chips, all of which are designed on the 40nm process.
TSMC will produce its duo-core Antilles graphics chip and low-priced graphics chips in the first quarter next year.
However, AMD's 32nm Llano processor will be produced at affiliate GlobalFoundries sometime next year.