AMD AMD today
announced that it amended its Wafer Supply Agreement (WSA) with
GLOBALFOUNDRIES Inc. for 2014. Under the terms of the amendment, AMD
and GLOBALFOUNDRIES agreed on purchase commitments for 2014 and
established fixed pricing and other terms of the WSA which apply to
products AMD will purchase from GLOBALFOUNDRIES. Under this amendment
AMD expects to pay GLOBALFOUNDRIES approximately $1.2 billion in
2014. These purchases contemplate AMD's current PC market
expectations and the manufacturing of certain Graphics Processor
Units (GPUs) and semi-custom game console products at GLOBALFOUNDRIES
in 2014. The 2014 amendment does not impact AMD's 2014 financial
goals including gross margin.
"The successful close of our amended wafer supply agreement with
GLOBALFOUNDRIES demonstrates the continued commitment from our two
companies to strengthen our business relationship as long-term
strategic partners, and GLOBALFOUNDRIES' ability to execute in
alignment with our product roadmap," said Rory Read, president and
chief executive officer, AMD. "This latest step in AMD's continued
transformation plays a critical role in our goals for 2014."
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