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AMD: 'Price for 32nm products will be based on good die'
AMD has amended its Wafer Supply Agreement (WSA) with Globalfoundries. The primary purpose of the amendment was to revise the pricing methodology applicable to wafers delivered in 2011 for AMD's microprocessor and accelerated processing unit (APU) products.
The amendment also modified AMD's existing commitments regarding future increases in production of certain graphics processing unit (GPU) and chipset products at Globalfoundries.
Under the amended agreement, Globalfoundries has committed to provide AMD with, and AMD has committed to purchase, a fixed number of 45nm and 32nm wafers per quarter in 2011. AMD will pay Globalfoundries fixed prices for 45nm wafers delivered in 2011. AMD's price for 32nm products will be based on good die.
In addition, AMD also agreed to pay an additional quarterly amount to Globalfoundries during 2012 if Globalfoundries meets specified conditions related to continued availability of 32nm capacity as of the beginning of 2012.
For 2012, AMD will resume compensating Globalfoundries on a cost-plus basis to manufacture wafers for its microprocessor and APU products. AMD currently estimates that it will pay Globalfoundries approximately USD 1.1-1.5 billion in 2011 and USD 1.5-1.9 billion in 2012 for wafer purchases under the amended WSA. In 2010, AMD paid Globalfoundries approximately USD 1.2 billion for wafer purchases.
