Chip maker AMD has admitted it is suffering from inventory problems but is hopeful they'll be sorted out in the next few weeks. There has been speculation that AMD has been throttling supplies of chips to smaller manufacturers to bolster relations with its newest love Dell.

AMD European channel marketing manager Richard Baker told Reg Hardware: "It's true there have been problems but they're not caused by our relationship with Dell."

"The shift away from desktops and to notebooks has been more skewed than we expected. Secondly demand for dual core chips has outstripped supply - there's been greater demand than expected.

"And, thirdly, although we've worked with the guys in Dresden to increase production of silicon the supply of ceramic packaging for the silicon has been slower to catch up."

Although reluctant to give a hostage to fortune, Baker said: "Supplies should be significantly better this week and will carry on getting noticeably better in the weeks to come. I'd like to rashly promise no more problems but you can't tell market demands but things will get noticeably better." ®

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