Amd negotiates new wsa deal with globalfoundries

With GlobalFoundries withdrawing from 7nm chip manufacturing, the Sunnyvale company appears to be ready to negotiate a new agreement with the WSA (Wafer Supply Agreement) to improve its situation regarding the manufacture of its next 7nm chips., which are now done at TSMC.

AMD currently pays a fine for each wafer manufactured outside of GlobalFoundries

Some time ago, GlobalFoundries belonged to AMD, but when it was financially 'tight', it decided to separate this business, although GlobalFoundries continued to manufacture chips for AMD. Both currently have an agreement via WSA with which AMD pays only for the requested wafers, and nothing else, but in the event that AMD uses any other factory for its chips, AMD must not only pay the cost of the wafer, also a GlobalFoundries fine for each of them.

Obviously, this is not in AMD's interest, so they would be negotiating a seventh amendment with the WSA (Wafer Supply Agreement) that would free them from fines and be able to work more freely with other chip manufacturers, such as TSMC and Samsung.

For those who don't know, the WSA (or Wafer Supply Agreement) is the document that dictates the design-manufacturer relationship between GlobalFoundries and AMD.

According to Wccftech sources, AMD is confident that they will accept the new terms that are "mutually beneficial" to both parties, although it was not specified exactly what the agreement would be like.

For AMD, more money released from the WSA means more money that they can invest in R&D or anything else that helps improve their products in the future.

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