In a brief filing of the Securities and Exchange Commission`s Form 8-K this afternoon, AMD announced that it has again amended its wafer supply agreement with GlobalFoundries (and AMD Fab spin-off). Under the terms of the amended Seventh Amendment, AMD will implement its existing commitment to use GlobalFoundries by 2024, with the latest change setting purchasing targets for 2022, 2023 and 2024. Beyond these new objectives, however, the agreement exempts AMD from any other exclusivity obligation to GlobalFoundries. AMD is now free to use any Fab on any process node. One of the most important aspects of the new deal is that if AMD does not meet its annual platelet purchase target for 2019, 2020 and 2021, GlobalFoundries will have to pay „a portion of the difference” between actual platelet purchases and the planned target for this year. While this isn`t exactly a take-or-pay deal AMD had with GlobalFoundries a few years ago, it still has to use/sell 12LP and 14LPP chips in bulk to avoid paying fees to its partner. However, since AMD does not disclose what platelet volumes are required, it is not clear how they will affect the company`s product line in the coming years. „AMD announced today that it has entered into a seventh amendment to its wafer supply agreement with GLOBALFOUNDRIES Inc. (GF). GF continues to be a long-term strategic partner of AMD for the 12nm node and above, and the change sets purchase commitments and prices of 12nm and above for the years 2019 to 2021. This change gives AMD full flexibility to purchase wafers from any foundry at the 7nm node and beyond, with no one-time payments or royalties. It should also be noted that the latest ESC technically extends the agreement one last time (?).
The previous seventh amendment was due to expire on 31 March 2024. While the new change expires on December 31, 2024. Aside from the adjustment for the entire calendar year, there is currently no sign that AMD is considering significantly extending its current agreement with GlobalFoundries. With the removal of all exclusivity deals — and especially in the midst of this chip crisis — it seems that AMD is slowly dismantling its management of GlobalFoundries for high-performance logical chips. As a brief reminder, the Seventh WSA Amendment, signed in January 2019, sets out the terms of the relationship between AMD and GlobalFoundries until the end of 2024. Among other things, wafer purchase targets have been set for the first three years of the agreement (2019-2021), with the last three years to be negotiated at a later date. Meanwhile, this deal also began the process of decoupling AMD from GlobalFoundries by allowing AMD to leverage other competing fabs for 7nm and smaller, while GlobalFoundries remained the exclusive supplier of AMD chips on 12nm and larger nodes. In the meantime, it`s worth noting that while the latest WSA change sets out detailed volume and pricing plans through 2021, AMD`s overall agreement with GlobalFoundries still runs through 2024. Over the next few years, AMD and GlobalFoundries will still have to decide how the plant will supply AMD in the final years of the deal. Which, given GlobalFoundries` recent change of leadership, will lead to a fascinating situation, to say the least. At a high level, it`s pretty easy to see how AMD could take advantage of 12nm+ capacity by 2021, but AMD`s need for such a large node (or GlobalFoundries` other specialized node) in the 2022-2024 period isn`t as obvious.
A list of our current agreements with public institutions can be found at the following address: Department of Licensing Agreements with Public Entities As with the previous agreement, these targets are binding in both directions. GlobalFoundries is required to allocate a minimum amount of its capacity to AMD`s orders, and AMD, in turn, is required to pay for such wafers, whether or not they use that capacity. For finished wafers, the agreement sets new, undisclosed prices. In the meantime, for every capacity AMD doesn`t use, they`ll have to pay a portion of the difference to GlobalFoundries again. GlobalFoundries will also be prepaid for some of these orders in 2022 and 2023, although Form 8-K does not specify how much. To make business more efficient, we occasionally enter into agreements with others: AMD announced on Tuesday that it has changed its wafer supply agreement with GlobalFoundries. As part of the new deal, the two companies have agreed on the prices and quantities of wafers AMD will buy from the U.S. foundry until at least 2021.
The seventh wafer change between the two parties marks the recent shift in the way the two companies do business with each other, against a backdrop of shifting business strategies on both sides. However, this won`t be the last time either; While the latest change sets purchasing targets until 2021, the entire CES itself will operate until March 1, 2024. The bottom line is that from that point on, AMD has all of its major 7nm processors and GPUs currently announced planned to use TSMC`s 7nm process, and AMD is also free to tap into Samsung if they wish. In addition, AMD will continue to rely heavily on GlobalFoundries for larger nodes for the latest WSA update, as the company will remain AMD`s long-term strategic supplier for 12nm and up. The new agreement sets out AMD`s purchase commitments and GlobalFoundries` prices through 2021. Now that this is said, the net impact of this change will likely be limited, as AMD has already been free to follow other fabs for 7nm and smaller nodes – which will make up the vast majority of AMD`s needs over the next three years. But it underscores how AMD and GlobalFoundries are slowly moving away from each other as GlobalFoundries has left the race for advanced manufacturing nodes. But it`s extraordinary if your book is good and has a high or potential market value. By using this website, you agree to security monitoring and auditing. For security reasons and to ensure that the public service remains accessible to users, this state computer system uses network traffic monitoring programs to identify unauthorized attempts to upload or modify information, or otherwise cause damage, including attempts to deny service to users. If you`re aiming to get a contract with Webnovel (or a really similar service), I recommend setting two goals in advance: Current policies limit each user to a maximum of 10 requests per second in total, regardless of the number of machines used to send requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that make excessive requests.
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