AMD revises GlobalFoundries supply deal to improve output


Posts: 3,073   +97
AMD revealed today it has made an amendment to its wafer-supply agreement with GlobalFoundries, the spinout of its own foundry operations, in a way that "better aligns to AMD's business and incentivizes GlobalFoundries to continue improving 32nm yields." Under the amended deal, AMD will pay the chipmaker only for good 32nm die it receives in 2011 while prices for 45nm wafers will now be based on a fixed pre-agreed price.

Read the whole story


Posts: 4,840   +1,264
Probably just semantics. Given that the same players are involved with both companies, it probably boils down to a balancing the books equation - AMD can either pay X amount per wafer or the same X amount divided by GloFo's stated yield per wafer.

The other alternative is that GloFo's 32nm process yields do not meet AMD's expectation and AMD doesn't want to pay for some very expensive sand.