AMD won't be producing its GPUs or chipsets anytime soon. In
order to do that the company would have to design a GPU specially for its Dresden FAB and since it is inexperienced it would probably heavily affect the yields
as well.
DAAMIT is happy with TSMC as these guys know what thay are doing and AMD needs Dresden to produce K10 and K8 CPUs. Once it gets K10
Barcelona and Agena out it will need all the capacities it can get to fill the
channel.
Dell, HP and some other big sharks are waiting for Agena aka
Phenom and Barcelona Aka Opteron 2200 as their Athlon sales is declining. More
and more people are going for a Core 2 Duo as it’s a great CPU for a little
money.
We still don’t know what will happen beyond R700.
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Graphics
AMD will stay away from GPU production
TSMC does it great