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.
(Score: 2) by butthurt on Sunday September 04 2016, @10:17PM
GlobalFoundries was created by the divestiture of the manufacturing arm of Advanced Micro Devices (AMD) on March 2, 2009, expanded through the acquisition of Chartered Semiconductor on January 23, 2010, and further expanded through the acquisition of IBM Microelectronics on July 1, 2015. The Emirate of Abu Dhabi is the owner of the company [...]
—https://en.wikipedia.org/wiki/GlobalFoundries [wikipedia.org]
(Score: -1, Spam) by Anonymous Coward on Sunday September 04 2016, @11:02PM
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(Score: 0) by Anonymous Coward on Monday September 05 2016, @04:41AM
Yep, a collection of odd bed-fellows. A good friend went with GF when IBM sold off their Burlington VT fab. Sounds like this AMD contract will keep his job going for at least another 5 years, which will be just about enough to put his kid through college.