AMD is considering stopping running its own fabs, according to IDG news service. AMD operates two fabs: Fab 30 and Fab 36. Fab 30 is being upgraded to handle 300mm production. This has proved expensive particularly when it is considered that the company is building a new 45nm plant in Malta, New York, that would come online in 2009.

IDG seems to think that AMD will cut costs by outsourcing more—or all—of its chip making as early as 2008.

Deals being hatched could mean that AMD's lower-end CPUs being manufactured by a third party. AMD's Dresden facility could also be sold off.

Ars Technica thinks that Chartered Semiconductor, which handles some of AMD's manufacturing, could be a likely outsourcing partner.

More here.