AMD announced yesterday that Q3 revenue is expected to increase about 4 to 6 percent compared to Q2, somewhat lower than the previously forecasted 10 percent growth.

AMD pins the blame for the drop on trouble with the 32nm transition. In a statement the company confirmed Globalfoundries’ fab in Dresden was facing ramp and manufacturing issues, thus limiting Llano shipments. In addition, 45nm supply was also less than expected.

“The less-than-forecasted preliminary third quarter 2011 gross margin results are primarily due to less-than-expected supply of Llano and associated products with higher average selling price (ASP). Additionally, shipments of AMD's next-generation server processor, codenamed Interlagos, occurred later in the third quarter than originally anticipated,” reads the statement.

AMD will release the full quarterly results in a month, October 27.