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posted by takyon on Sunday September 04 2016, @10:02PM   Printer-friendly
from the no-free-fab dept.

AMD and its primary fab partner GlobalFoundries have signed an updated five-year wafer supply agreement that will extend through the end of 2020. The restructuring simultaneously deepens the commitment between the partners and gives AMD limited freedom to see other foundries. In exchange, GlobalFoundries will get some additional compensation.

Per the terms of the agreement, which pertains to AMD's microprocessor, graphics processor, and semi-custom products, AMD will make $25 million cash installments to GlobalFoundries over the next four quarters, for a total cash transfer of $100 million. Beginning in 2017, AMD will be required to make quarterly payments to GlobalFoundries based on the volume of certain wafers it is obtaining from another foundry.

The agreement also stipulates annual wafer purchase targets for the five-year period, sets fixed wafer prices for 2016, and provides a framework for yearly wafer pricing. If annual targets are not met, a penalty will be imposed based on the difference between actual wafer purchases and the target for that year.

takyon: Those are some of the costs of outsourcing your semiconductor fabrication. Let's hope AMD meets those targets.


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  • (Score: 0) by Anonymous Coward on Monday September 05 2016, @05:47PM

    by Anonymous Coward on Monday September 05 2016, @05:47PM (#397855)

    Let's hope AMD meets those targets.

    I wonder if AMD might do better if they continued to support Windows 7 with their future CPUs and chipsets.

    http://www.pcworld.com/article/3112663/software/microsoft-made-em-do-it-the-latest-kaby-lake-zen-chips-will-support-only-windows-10.html [pcworld.com]

    From what I know there are a number of large enterprises who have only just switched from Windows XP to Windows 7 and they sure won't be switching for a fair number of years. They might do a hardware refresh within 5 years but not a software one. And if Intel's stuff doesn't support Windows 7 in 3 years time while AMD is still around and does, then AMD might gain some share.

  • (Score: 2) by linuxrocks123 on Tuesday September 06 2016, @03:01AM

    by linuxrocks123 (2557) on Tuesday September 06 2016, @03:01AM (#397956) Journal

    No one is making incompatible changes to the x86 architecture. Older Windows versions will almost certainly run just fine, even if they're not officially "supported".