AMD won't be producing its GPUs or chipsets anytime soon. In order to do that the company would have to design a GPU specially for its Dresden FAB and since it is inexperienced it would probably heavily affect the yields as well.
DAAMIT is happy with TSMC as these guys know what thay are doing and AMD needs Dresden to produce K10 and K8 CPUs. Once it gets K10 Barcelona and Agena out it will need all the capacities it can get to fill the channel.
Dell, HP and some other big sharks are waiting for Agena aka Phenom and Barcelona Aka Opteron 2200 as their Athlon sales is declining. More and more people are going for a Core 2 Duo as it’s a great CPU for a little money.
We still don’t know what will happen beyond R700.
Published in Graphics
AMD will stay away from GPU production
TSMC does it great