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AMD will continue to buy components from GlobalFoundries until and including 2025

AMD will continue to buy components from GlobalFoundries until and including 2025

This year, AMD executives have repeatedly stated that the company is able to increase its revenue at a record pace just due to competent interaction with suppliers. GlobalFoundries, which was established in 2009 based on AMD's own production facilities, continues to play an important role in this area. The companies have extended the cooperation agreement until 2025.

In the previous edition, as AnandTech reminds, the agreement between AMD and GlobalFoundries implied the obligation of the former to buy a certain amount of silicon wafers worth $1.6 billion by the end of 2024. In the new version of the agreement, which was registered in the specialized American government bodies, the terms of agreements increased until the end of 2025, and the amount grew by $500 million. At the same time, it is not specified how much silicon wafers AMD is obliged to redeem annually. The text of the document only makes it clear that GlobalFoundries has increased its annual production quotas for AMD's needs, and the parties have also approved a new pricing policy. Given the trend in recent quarters, it's unlikely that GlobalFoundries' silicon wafers will be cheaper for AMD. In fact, the company's cost increases under the terms of this agreement may even outpace production volume increases. The amendments do not introduce the exclusivity condition, which the companies waived earlier. In other words, AMD can order any production to any contract manufacturer. However, with regard to GlobalFounders range of technological processes remains the same & ; 14-nm and 12-nm, which are used for Ryzen processors of previous generations and some components of Ryzen and EPYC processors of current generations, as well as chipsets AMD. It turns out that the company will need 12-nm components at least until the end of 2025, and TSMC products will not be able to completely displace the products received from GlobalFoundries, by then.

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