AMD Announces Amendment of Wafer Supply Agreement with Globalfoundries
AMD (NYSE: AMD) today announced that it successfully amended its Wafer Supply Agreement (WSA) with Globalfoundries Inc.
The closure of amendment negotiations solidifies AMD's new operating model as communicated at the third quarter 2012 earnings announcement.
To better align with today's PC market dynamics, AMD and Globalfoundries agreed on purchase commitments for fourth quarter 2012 and established fixed pricing and other terms of the WSA which apply to products AMD will purchase from Globalfoundries through Dec. 31, 2013.
"Today's announcement demonstrates that the long-term strategic partnership between AMD and Globalfoundries continues to benefit both companies," said Rory Read, president and chief executive officer, AMD. "Globalfoundries' performance in meeting our delivery requirements in 2012 was strong and they remain a strategic and important foundry partner moving forward. We are committed to develop and grow our business with Globalfoundries, increasing our engagement across our industry leading APU and graphics roadmaps. The newly amended agreement is another step we are taking to further strengthen our relationship with Globalfoundries as well as AMD's financial foundation." Announcement details:
- AMD lowered its wafer purchase commitments for the fourth quarter