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AMD and GlobalFoundries Wafer Supply Agreement Potentially Receiving 7th Amendment

Category: Manufacturers
Posted: 07:32AM

There are many differences between Intel and AMD, but one that was not always the case is Intel being the one that owns and operates its own fabs for manufacturing its chips. It had been that AMD also had its own fabs, but to reduce costs it spun them off into what we now know as GlobalFoundries. Part of the spin off was a Wafer Supply Agreement (WSA) between the two that requires AMD purchase so many wafers from GlobalFoundries each year, or face a penalty for not meeting the quota. This agreement has been renegotiated and amended over the years, with the most recent amendment allowing AMD to pay a penalty to go to another company, like TSMC or Samsung. Now, following the announcement that GlobalFoundries is putting its development of a 7 nm manufacturing process on indefinite hold, there are rumors a seventh amendment to the WSA is being negotiated.

It is almost certain these negotiations are going on, but exactly what they may cover is unknown. One would expect AMD is seeking more freedom to turn elsewhere for its next generation parts, but according to WCCFtech, the new terms are to be 'mutually beneficial,' so GlobalFoundies may also be getting something out of this. Hopefully it will not take long for the two companies to sign the changes and share it with the public.

Source: WCCFtech

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