As you can see, making a wafer in a foundry other than GloFo is actually a double hazard. Simply put, these are obstacles that still bind the company to its past. But all that could change if GlobalFoundries officially comes out of the race and significantly changes the nature of its relationship with AMD. You see, the understanding between the two companies was that GlobalFoundries would continue to produce new process nodes and continue to buy AMD – the former no longer occurs, the latter can now be modified. The DUV process will likely reduce wafer yield and limit AMD`s ability to improve its gross margin by more than 40%. AMD may have to give up profitability to increase revenue and market share. AMD is now officially weapon-free to build future processors and GPUs on 7nm and denser when GlobalFoundries resigns. The company has concluded discussions with foundry partner and former subsidiary GlobalFoundries, and while the plant will continue to supply wafers of 12m and above, AMD will no longer have to pay from here to jump to competing foundries. AMD currently sells many products manufactured by GlobalFoundries with its 12LP and 14LPP manufacturing technologies. And over the next few years, the company will have to supply many customers with these products for embedded and commercial applications (e.g.B. Ryzen Pro, Ryzen Embedded, and EPYC processors), not to mention the 14nm I/O-Die intended for use in next-generation AMDs server and desktop processors. Although AMD`s state-of-the-art parts are starting to scale up to 7nm, AMD will still have strong demand for 12nm+ manufacturing and will require GlobalFoundries in the future.
The end result is that from that moment on, AMD has planned all of its major 7nm processors and GPUs currently announced for using TSMC`s 7nm process, and AMD is still free to use Samsung if they wish. In addition, with the latest CES update, AMD will continue to rely heavily on GlobalFoundries for larger nodes, as AMD will remain the long-term strategic provider for 12nm and up. The new agreement sets AMD`s purchase obligations and GlobalFoundries` prices until 2021. Can someone explain to me how AMD`s wafer delivery contract with GloFlo works? How did we get here? How long is it valid for? Is this still valid, even if GloFlo has dropped its 7nm lawsuit? Is it like a percentage of wafers that AMD has to buy through GloFlo? Thanks in advance! Lisa Su confirmed the seventh change to its wafer supply agreement with GlobalFoundries during its Q4 conference call. It`s also very important for Team Red. He has been hired by CES with GlobalFoundries since he sold his stake in the foundry, and he has always had to spend mountains of cash on royalties to circumvent the deal if his customers` needs required it. If GF is not able to achieve the desired manufacturing yields, implement advanced technologies in processes, and produce the desired amount of products on time and at a lower cost, AMD could face delays in product launches, supply shortages, and high production costs. thus reducing its competitive advantage and reducing losses. „AMD announced today that it has entered into a seventh amendment to its wafer supply agreement with GLOBALFOUNDRIES Inc. . .