Categories: News

AMD Amends Wafer Supply Agreement With GlobalFoundries

AMD Secures Changes to Wafer Supply Agreement

In their latest Q4 2018 earnings report, AMD provided a number of updates for the company. One of the ongoing issues is the Wafer Supply Agreement with GlobalFoundries. The two firms have a long history between the two of them that stretches back to when the fabs were a part of the firm. As part of the Q4 update, the company has announced an update to the WSA to avoid some penalties for 7nm.

Due to the spin-off of GlobalFoundries, the company no longer had any fabs. To secure a relationship and deal with the fab, the company committed itself to buy chips from them. It also included some penalties if they did not purchase enough chips or they purchased chips from another fab like TSMC. For AMD, the company was able to secure preferential pricing at a point when their finances were not good.

Free to Source 7nm Chips Without Penalties

Now, however, the situation has shifted a lot. GlobalFoundries has abandoned 7nm for now while AMD is moving onto 7nm for GPUs like Radeon VII Vega 2 and Zen 2 CPUs. In order to avoid paying a penalty when buying 7nm chips from say, TSMC, the company had to amend the agreement. Since GlobalFoundries can’t offer 7nm right now, the company was amenable to change. AMD can now go to any fab they want to get 7nm chips.

Moving forward, AMD will continue to get 12nm and above chips such as 14nm chips from GlobalFoundries. This gives AMD the flexibility to get combine supplies from multiple fabs. For instance, the new Zen 2 designs feature a 14nm I/O die and 7nm chiplet. The 14nm part will be supplied by GlobalFoundries while TSMC provides the 7nm part. At least until about 2021, AMD will continue to source chips from GlobalFoundries so chiplet designs will likely stick around.


Samuel Wan

Samuel joined eTeknix in 2015 after becoming engrossed in technology and PC hardware. With his passion for gaming and hardware, tech writing was the logical step to share the latest news with the world. When he’s not busy dreaming about the latest hardware, he enjoys gaming, music, camping and reading.

Disqus Comments Loading...

Recent Posts

Insurers Defend Accepting Ransomware Claims!

Ransomware attacks arguably represent one of the worst kinds of malware you can install on…

2 hours ago

MSI Unveils its Intel 500-Series Motherboards

MSI has officially announced the launch of its new Intel 500-Series motherboards designed on the…

2 hours ago

Yakuza Remastered Collection PC Requirements Confirmed

While I have never personally played any of the 'Yakuza' games, when it was announced…

2 hours ago

Arctic Launches its Space-Saving P12 Slim PWM PST Fan

Arctic has today announced the launch of its brand new P12 Slim PWM PST -…

2 hours ago

European Investigation Called for Nintendo Switch Joy-Con Drift

It's been well documented since the initial launch of the Nintendo Switch that while the…

2 hours ago

Scalpers Made $5.88M Selling AMD Ryzen 5000’s on eBay

It's been pretty well known that following the launch of various new tech products late…

2 hours ago