Amd reforms its contract with globalfoundries

AMD has modified the contract it had with GlobalFoundries to manufacture its new GPUs and processors to ensure that it can enjoy the most advanced semiconductor manufacturing technologies until 2020.

AMD and GlobalFoundries Announce New Collaboration Agreement

The new agreement between AMD and GlobalFoundries covers from January 1, 2016 to December 31, 2020, so Sunnyvale's have decided to bet on a long-term relationship with their new partner. This will continue to benefit from the current 14nm FinFET manufacturing process, which has been introduced with Polaris GPUs, and the future 7nm FinFet process to achieve even more efficient and powerful designs.

In the words of Lisa SU, AMD CEO, "The goal is for AMD to have continuous access to the cutting edge of technology in manufacturing processes to enable multiple generations of quality products to be built in the coming years."

A measure that comes after the success of the new AMD Radeon RX 480, RX 470 and RX 460 graphics cards that have been manufactured at 14nm, thus taking the lead on its great rival Nvidia, which had to comply with the 16nm TSMC.. The smaller manufacturing node allows more chips to be produced for each silicon wafer, thus making production cheaper and being able to offer a tighter sale price.

The new contract involves close collaboration between AMD and GlobalFoundries to further advance the process development at 7nm, it also allows AMD to maintain some flexibility to manufacture products with other types of wafers and finally a fixed price for wafers produced in 2016. and the ability to trade for 2017. AMD will have to pay $ 100 million to GlobalFoundries in various installments from the last quarter of 2016 to the third quarter of 2017 in addition to other quarterly payments based on the volume of certain types of wafers bought from another chip maker.