AMD Global Foundries Collaborate on Next-Generation Technology

AMD and Global Foundries are teaming up to create next-generation technology. This collaboration will bring significant advancements to the industry.

The partnership aims to develop cutting-edge semiconductor manufacturing processes, which will enable the production of smaller, faster, and more powerful chips. This is a major breakthrough in the field of computing.

By working together, AMD and Global Foundries will be able to share resources and expertise, accelerating the development of new technologies. This collaboration will drive innovation and push the boundaries of what is possible with semiconductor manufacturing.

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AMD and GlobalFoundries have a long-standing partnership that dates back over 12 years. They've been working together to manufacture high-performance chips for AMD's growing business.

In 2021, GlobalFoundries announced an extension of their Wafer Supply Agreement (WSA) with AMD, ensuring supply through 2025. This agreement also expands the breadth of their partnership, including supply assurance for AMD chips serving various markets.

The partnership has been beneficial for both companies, with AMD expecting to purchase approximately $2.1 billion of wafers from GlobalFoundries between 2022 and 2025.

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GlobalFoundries has agreed to amend its Wafer Supply Agreement with AMD to increase the volume of chips it will supply and extend the terms of the agreement to secure supply through 2025.

This amendment is a prime example of customers' desire and willingness to secure long-term supply, according to Tom Caulfield, GF CEO. The agreement not only increases the volume of chips GF will produce for AMD but also secures and extends their supply through 2025.

The global demand for semiconductors is growing at an unprecedented rate, and GF is responding to this growth through a series of strategic long-term agreements with existing and new customers.

GF has been manufacturing high-performance chips for AMD for more than 12 years, and this new agreement extends this long-standing partnership to ensure supply for AMD's growing business.

With the amended agreement, AMD now expects to purchase approximately $2.1 billion of wafers from GF between 2022 and 2025.

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The agreement also expands the breadth of the partnership, including supply assurance for AMD chips serving the datacenter, personal computing, embedded, and other growth markets.

This ensures that AMD maintains supplier diversity for the 12nm and 14nm nodes and has some capacity booked simultaneously.

Under the amended agreement, GlobalFoundries will no longer be AMD's exclusive supplier for the 12nm and 14nm nodes, providing AMD with full flexibility to contract with any wafer foundry.

AMD will also pre-pay GlobalFoundries for some of the products that it will purchase over the course of the next few years, covering the products that AMD has agreed to buy from GlobalFoundries between 2022 and 2024.

If AMD fails to meet the purchase commitment, it will be required to pay GlobalFoundries a portion of the difference between the purchase target and the prepayment.

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GlobalFoundries was spun out from AMD in 2008 as a fabless company, and its stock has since risen 22x.

The company's first CEO, who led from 2011-2014, fully divested GlobalFoundries from AMD and partnered with Samsung on 14nm manufacturing.

GlobalFoundries then acquired IBM's Microelectronics business, and its owner, the Abu Dhabi wealth fund, continued to fund investments.

The company's CEO from 2014-2018, ramped up its Malta Fab and pushed to compete with TSMC and Samsung at the high end.

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In recent years, AMD has been working closely with GlobalFoundries to develop new manufacturing processes.

GlobalFoundries has been investing heavily in its 7nm and 5nm process nodes, which are expected to be used in future AMD products.

AMD has already started using GlobalFoundries' 7nm process node for its Ryzen and EPYC CPUs.

This partnership has allowed AMD to stay competitive with Intel, which has traditionally had an advantage in manufacturing technology.

GlobalFoundries' 7nm process node is expected to provide a significant boost in performance and power efficiency for AMD's CPUs.

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AMD has a long-standing partnership with GlobalFoundries, with the two companies agreeing to amend their Wafer Supply Agreement in 2021.

The agreement extends the partnership through 2025, ensuring AMD's supply of chips for its growing business. GF has been manufacturing high-performance chips for AMD for over 12 years.

AMD expects to purchase approximately $2.1 billion of wafers from GF between 2022 and 2025. This is a significant increase from previous agreements.

The agreement also expands the breadth of the partnership, including supply assurance for AMD chips serving the datacenter, personal computing, embedded, and other growth markets.

AMD has agreed to pre-pay GlobalFoundries for some of the products it will purchase over the next few years. The pre-payment will cover the products AMD has agreed to buy from GlobalFoundries between 2022 and 2024.

AMD will purchase roughly $1.6 billion of wafers from GlobalFoundries from 2022 to 2024. The company has highlighted that it will maintain supplier diversity for the 12nm and 14nm nodes.

GlobalFoundries will no longer be AMD's exclusive supplier for the 12nm and 14nm nodes. The fab will also allocate minimum capacities for AMD's needs from 2022 to 2024.

If AMD fails to meet the annual wafer purchase target, the company will be required to pay GlobalFoundries a portion of the difference between the actual wafer purchases and the target.

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