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ADVANCED MICRO DEVICES INC 8-K Report, Material Agreement (Dec 23, 2021)

Reports
Material Agreements
Filing Date
Filed December 23, 2021
Period End
December 23, 2021
Security
AMD
In the record · 2016–202610-K1210-Q328-K136

AMD filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 136 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Material agreement8-K · Oct ’20Oct ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed December 23, 2021. Cited figures are marked; the original filing is the authoritative source.

Advanced Micro Devices, Inc. (AMD) has filed an 8-K detailing a significant amendment to its Wafer Supply Agreement with GLOBALFOUNDRIES Inc. (GF).

This amendment extends the wafer supply and pricing terms through December 31, 2025, specifically for AMD's 12nm and 14nm technology nodes. Key changes include GF increasing minimum annual capacity allocation for AMD and establishing new pricing and annual purchase targets for the period of 2022 through 2025. This agreement is crucial for AMD's supply chain visibility and cost management.

The company estimates purchasing approximately $2.1 billiona of wafers from GF under this amendment over the four-year period. Importantly, the amendment does not reintroduce exclusivity commitments, allowing AMD to retain full flexibility in sourcing wafers from other foundries across all technology nodes. This continued flexibility is a positive for investors, mitigating concentration risk.

02—Key points

Key Highlights

  1. AMD amended its Wafer Supply Agreement with GLOBALFOUNDRIES (GF) through December 31, 2025.
  2. The amendment covers wafer supply for AMD's 12nm and 14nm technology nodes.
  3. GF will increase minimum annual capacity allocation for AMD for the years 2022-2025.
  4. New pricing and annual wafer purchase targets for 2022-2025 have been agreed upon.
  5. AMD has modified pre-payment terms for wafers in 2022 and 2023.
  6. AMD estimates total wafer purchases from GF between 2022-2025 to be approximately $2.1 billion.
  7. AMD maintains full flexibility to source wafers from other foundries for all technology nodes.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of this 8-K filing?

    The 8-K filing announces a material definitive agreement: the First Amendment to the Amended and Restated Seventh Amendment to the Wafer Supply Agreement between AMD and GLOBALFOUNDRIES (GF). This amendment extends and modifies the terms of wafer supply, capacity commitments, and pricing for specific technology nodes through the end of 2025.

  2. What is the financial impact of this agreement on AMD?

    AMD estimates it will purchase approximately $2.1 billion of wafers from GF between 2022 and 2025 under this amended agreement. This provides visibility into a significant portion of AMD's manufacturing costs for its 12nm and 14nm products over the next four years.

  3. Does this agreement impose any exclusivity requirements on AMD?

    No, the amendment explicitly states that it does not affect prior exclusivity commitments that were removed previously. AMD retains full flexibility to contract with any wafer foundry for all products and technology nodes, which is a key advantage for supply chain diversification.

  4. Which AMD products are affected by this agreement?

    The agreement specifically pertains to wafer purchases for AMD's products manufactured using the 12nm and 14nm technology nodes.

04—Continue

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