The number of AMD processors circulating in Taiwan's gray market is rising at an alarming rate.
Local agents, who requested anonymity, said they are seeing a growing influx of AMD chips into the gray market from unnamed traders, who have priced their products 10% lower than chips bought directly from AMD. Facing the price pressure, some of AMD's local agents have reportedly moved to source their supply from this market.
Some put the blame on AMD itself. Citing distributors familiar with AMD, Taiwan's Chinese-language newspaper Commercial Times said the company, to bolster market share, started discussion with major PC makers and system integrators in the second quarter to offer attractive pricing in exchange for more chip orders. These clients may have resold any excess to the market, thus hurting demand for the more-expensive chips from AMD's official channels.  
Under such confusing market conditions, the share of gray market-originated AMD chips is said to have accounted for over 80% of some agents' sales.

Source: DigiTimes

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