2009 AMD to own wafer manufacturing business spun off Middle East oil sold Tyrant fund established GlobalFoundries Inc. (GF), although AMD has holdings of shares of GF company, and over the years GF stumbling process, but they have been AMD OEM partners are important, but fortunately finally stabilize the 14nm node down for AMD OEM Polaris and Zen processor. Recently AMD and GF has signed a $ 335 million partnership agreement, AMD before the end of 2020 will continue to buy GF wafer, the two sides will promote cooperation 7nm process development.

Signed between AMD and GF is the WSA (Wafer Supply Agreement) wafer supply agreement period up to five years, the last time the agreement was signed in 2011, and it was not the GF 32nm process immaturity, AMD is no longer used to purchase wafers fixed price and switch to cut out the cores can be used to pay. The agreement signed calculated from January 1, 2016, as of December 31, 2020, the year in which the wafer price is fixed, the next four years to determine the price of the frame.

Under the agreement, the two sides in addition to up to five years of wafer supplier cooperation, the will to work together to promote 7nm process development –GlobalFoundries has confirmed that canceled the 10nm process, AMD did not mention 10nm chip planned, both from 14nm directly kill the future 7nm process.

But it can not be completely ruled out AMD, there are other plans, because in the agreement AMD also retains the possibility of using other fab manufacture of certain products. Although this is only the possibility of agreement on the increase but this provision means that AMD may choose other foundries – on 14nm process is, GlobalFoundries now capacity can not fully meet the needs of AMD.

Agreement the two sides signed a total value of up to $ 335 million, of which $ 100 million in cash installments, starting from 2016 Q4 2017 Q3 quarter until quarter.

Another $ 235 million is for West Coast Hitech LP’s authorized shares, which is a wholly owned subsidiary of Mubadala Development Company, Mubadala is GlobalFoundries and major shareholders of the parent company ATIC, AMD give the company a total of 75 million, $ 5.98 per share of stock authorized, which do February 29, 2020 exercise.

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