Summary
Advanced Micro Devices, Inc. (AMD) announced a significant amendment to its Wafer Supply Agreement with GLOBALFOUNDRIES Inc. (GF) on March 30, 2014. This fourth amendment establishes fixed pricing and volume purchase commitments for AMD's wafer needs throughout the 2014 calendar year, covering key products such as microprocessors, graphics processors, and semi-custom chips for game consoles. This agreement is crucial for AMD's supply chain stability and cost management as it anticipates approximately $1.2 billion in wafer purchases from GF in 2014, with expectations of continued material purchases in the future.
Key Highlights
- 1AMD entered into a fourth amendment to its Wafer Supply Agreement with GLOBALFOUNDRIES Inc. (GF).
- 2The amendment sets volume purchase commitments and fixed pricing for wafers in the 2014 calendar year.
- 3This agreement covers wafers for AMD's microprocessor, graphics processor, and semi-custom game console products.
- 4AMD estimates it will purchase approximately $1.2 billion worth of wafers from GF in 2014.
- 5The company anticipates continued material purchases from GF under the agreement beyond 2014.
- 6This filing does not include the full text of the amendment, which will be filed in a subsequent Form 10-Q.
Frequently Asked Questions
The primary purpose of the fourth amendment is to establish volume purchase commitments and fixed pricing for wafers to be supplied by GLOBALFOUNDRIES (GF) to AMD throughout the 2014 calendar year, providing cost and supply certainty for key product lines.
AMD estimates that it will purchase approximately $1.2 billion worth of wafers from GLOBALFOUNDRIES during the 2014 calendar year.
The agreement covers wafers for AMD's microprocessor units (MPUs), graphics processor units (GPUs), and semi-custom products, including those for game consoles.
Yes, AMD expects that its future purchases from GLOBALFOUNDRIES will continue to be material under the Wafer Supply Agreement beyond 2014.