AMD will continue to purchase components from GlobalFoundries through 2025

Over the course of this year, AMD management has repeatedly stated that the company is able to increase revenue at a record pace precisely due to competent interaction with suppliers. GlobalFoundries, which was established in 2009 from AMD's own manufacturing facilities, continues to play an important role in this area. The companies have extended the cooperation agreement until 2025.

AMD will continue to purchase components from GlobalFoundries through 2025


Image source: TSMC

In the previous edition, as AnandTech recalls , the agreement between AMD and GlobalFoundries implied the obligation of the first to buy out a certain number of silicon wafers in the amount of $ 1.6 billion by the end of 2024. until the end of 2025, and the amount increased by $ 500 million. At the same time, it is not specified how many silicon wafers AMD undertakes to buy out annually.

The text of the document only makes it clear that GlobalFoundries has increased the annual quotas for the production of products for the needs of AMD, the parties also approved a new pricing policy. Given the trend in recent quarters, it is unlikely that GlobalFoundries silicon wafers will be cheaper for AMD. In fact, the growth in costs of the company under the terms of this agreement may even outstrip the increase in production volumes. The amendments do not introduce an exclusivity clause that the companies had previously waived. In other words, AMD can order any product from any contract manufacturer. However, in relation to GlobalFounders, the range of technical processes remains the same - 14nm and 12nm, which are used to manufacture Ryzen processors of previous generations and some components of current generations of Ryzen and EPYC processors, as well as AMD chipsets. It turns out,

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