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AMD Amends Wafer Supply Agreement with GLOBALFOUNDRIES

btarunr

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#1
AMD (NYSE: AMD) announced that it amended its Wafer Supply Agreement (WSA) with GLOBALFOUNDRIES Inc. The primary purpose of the amendment was to revise the pricing methodology applicable to wafers delivered in 2011 for AMD’s microprocessor and accelerated processing unit (APU) products. The amendment also modified AMD’s existing commitments regarding future increases in production of certain graphics processing unit (GPU) and chipset products at GLOBALFOUNDRIES.

Under the amended agreement, GLOBALFOUNDRIES has committed to provide AMD with, and AMD has committed to purchase, a fixed number of 45nm and 32nm wafers per quarter in 2011. AMD will pay GLOBALFOUNDRIES fixed prices for 45nm wafers delivered in 2011. AMD’s price for 32nm products will be based on good die.

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#2
AMD currently estimates that it will pay GLOBALFOUNDRIES approximately $1.1 to $1.5 billion in 2011 and $1.5 to $1.9 billion in 20121
Wow! They really do plan ahead! In fact they've already projected costs 18,110 years from now, I wonder how the world ending in 2012 affected their analysis. :)
 

X1REME

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#3
Wow! They really do plan ahead! In fact they've already projected costs 18,110 years from now, I wonder how the world ending in 2012 affected their analysis. :)

its an estimate, duh :slap:

This is a way of GF ramping out a new pricing standard across the industry? If AMD/GF deals are done on this basis in future then you can imagine the following happening very shortly:

TSMC’s customers turn around and say “hey, either give us a (good) cost/good chip deal or we’re off to GF”.

Which is pretty important considering TSMC’s yield performance at 40nm and their lack of yield performance at 32nm… cos they scrapped it.