A new contract between AMD and GlobalFoundries was concluded for a period of five years
AMD and GlobalFoundries has once again made changes to the cooperation agreement. This time a new contract will be in force for five years, not one year as previously.
As stated in the press release, the five-year agreement will further strengthen the strategic relationship between the companies. The contract involves the production of CPU and GPU according to the norms of 14 nm and 7 nm. As you know, GlobalFoundries will miss the 10-nanometer stage, going directly to the output by a more subtle process.
The agreement establishes annual mandatory purchases of wafers from silicon chips (Wafer Supply Agreement WSA). In particular, AMD is obliged to pay GlobalFoundries a one-time payment in the amount of $ 100 million. Subsequently, the amount of quarterly payments will be adjusted depending on the orders of AMD’s other semiconductor manufacturers, as the contract does not obligate the company to purchase only products from GlobalFoundries.