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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: 1, Interesting) by Anonymous Coward on Monday September 05 2016, @08:12AM
Oh, I'd go further.
Standard waiter can say "fuck you" and walk nearly any time he wants. It's not like there are ten thousand applicants for the job, and he has a decent selection to find work accommodation that meets his needs whether it's hours, work crew, or closeness to his home.
He isn't tied down by a mortgage, doesn't have to wait to find a buyer before he can pack up and move, and is free to chase his luck without dealing with the albatross of loss aversion.
In short, he's trade some dollars for peace of mind. Some people are like that.
Bossman, not so much. And it's painful to rationalize how much you are owned by the job, and even more to realize how little you can be bought for.
Some mates of mine moved into higher management. I wave at them at their desks as I'm leaving for the day. They've confided they fucked-up. For a few shekels more, they are working insane hours, worry about every fluttering butterfly, and see us more than their families.
And of course, a brand new boss needs a brand new car with a brand new payment. They are in hock more than me.
Anyhoo some people are the A-types, which is fine, but it would take a very large sum to essentially buy more comfort than I have now.