According to Digitimes, chipmaker AMD has expanded its 40nm chip deal with TSMC in an effort to boost APU production and overcome supply issues.

AMD is reportedly seeking to secure new production capacities for Zacate and Ontario processors in TSMC’s 12-inch facility at Fab 14. The outfit is reportedly planning to aggressively enter the Chinese market sometime in march, thus the need to resolve the shortage and build up inventory levels.

A couple of weeks ago AMD announced that it had shipped more than one million APUs in December. However, strong demand in the OEM market resulted in supply issues and Fusion motherboards and notebooks are still hard to come by in retail.

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