During its Q2 2011 earnings conference, AMD’s interim-CEO Thomas Seifert revealed that AMD already has working samples of GPUs using a 28nm fabrication process. AMD claims it is on track to introduce a revamped lineup of GPUs codenamed “Southen Islands” using the new process later this year. AMD expects to lead the graphic processor industry’s transition to the 28nm process.

AMD has tapped both Globalfoundries and TSMC to manufacture the new GPUs on their 28nm process. But since both the processes are vastly different, AMD would need independent GPU designs for each foundry. In spite of the risks, the cost savings from moving to the 28nm process should be significant, assuming good yields. Considering AMD’s GPU business lost $7 million this quarter, this is definitely good news.

It’s always a gamble to design complex GPUs on a cutting-edge process; Nvidia learnt it the hard way with the Geforce FX Series (NV30) back in the day when it was manufactured on the 130nm process. Let’s hope AMD has a better luck.

Source: AMD Q2 2011 Earnings Conference via Xbit Labs