Friday, December 15, 2017
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Facebook Will Start Putting Ads Before Videos
Samsung's Smart Speaker Coming Next Year
Internet Neutrality is Officially Dead
Synaptics Brings First In-Display Fingerprint Sensors for Smartphones
Disney to Buy Fox Film and Some TV Businesses for $52 billion
Powerful iMac Pro is Available Today, Starting at $5,000
IBM Announces Collaboration With Leading Companies to Accelerate Quantum Computing
Bing Gets Intelligent Search Features, Powered by AI
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > General Computing > AMD To ...
Last 7 Days News : SU MO TU WE TH FR SA All News

Friday, December 07, 2012
AMD To Scale Back Chips Purchases From GLOBALFOUNDRIES


AMD has amended its Wafer Supply Agreement (WSA) with its manufacturing partner GLOBALFOUNDRIES Inc., in a move that could help the company save cash as the PC market continues to decelerate.

AMD and GLOBALFOUNDRIES agreed on purchase commitments for fourth quarter 2012 and established fixed pricing and other terms of the WSA which apply to products AMD will purchase from GLOBALFOUNDRIES through Dec. 31, 2013.

Specifically, AMD lowered its wafer purchase commitments for the fourth quarter 2012. AMD currently estimates that it will purchase wafers from GLOBALFOUNDRIES for approximately $115 million in the fourth quarter 2012 and $1.15 billion in fiscal 2013. AMD has also committed to purchase wafers from GLOBALFOUNDRIES for approximately $250 million during first quarter 2014.

AMD expects to negotiate the remainder of its 2014 purchase commitments from GLOBALFOUNDRIES in 2013.

AMD will also make a termination payment of $320 million related to the take-or-pay agreement with GLOBALFOUNDRIES associated with the adjusted wafer purchase commitments in fourth quarter 2012.

The cash impact of the termination fee will spread over several quarters. AMD said that the termination fee would result in a net one-time charge of approximately $165 million recorded in the fourth quarter 2012.

"Today's announcement demonstrates that the long-term strategic partnership between AMD and GLOBALFOUNDRIES continues to benefit both companies," said Rory Read, president and chief executive officer, AMD. "GLOBALFOUNDRIES' performance in meeting our delivery requirements in 2012 was strong and they remain a strategic and important foundry partner moving forward. We are committed to develop and grow our business with GLOBALFOUNDRIES, increasing our engagement across our industry leading APU and graphics roadmaps. The newly amended agreement is another step we are taking to further strengthen our relationship with GLOBALFOUNDRIES as well as AMD's financial foundation."

Separately, as AMD moves to standard 28nm process technology, AMD will reduce future reimbursements to GLOBALFOUNDRIES for certain research and development costs.

As a result of the amendment, AMD expects to return to free cash flow generation in the second half of 2013.

The growing popularity of Apple's iPad and Google Android devices have sapped demand for PCs. With Chinese and European economic growth slowing and the U.S. recovery tepid, global PC shipments are expected to decline slightly this year - the first annual drop since 2001.

AMD has been laying off engineers while looking for new markets and trying to slow the pace at which it burns through cash.


Previous
Next
U.S. Carriers To Support 911 Texting Services        All News        Hitachi To Stop Making Semiconductors by 2014
Google To Charge Businesses For Using Google Web Apps     General Computing News      Hitachi To Stop Making Semiconductors by 2014

Get RSS feed Easy Print E-Mail this Message

Related News
New Radeon Software Adrenalin Edition Provides Amped-Up Connected Gaming
Intel Uses Cobalt Interconnect for 10nm, Global Foundries Detail EUV Lithography for 7nm
Microsoft's Project Olympus Hardware Design Powered by the AMD EPYC Processor Now Deployed in Azure
GPU Shipments in Q3: AMD Increased 8 percent, Nvidia Increased 30 Percent
New Servers Based on AMD EPYC and AMD Radeon Instinct Platforms Appear at SC17
Intel to Add AMD Radeon Graphics to New Laptop Processor
Zen Cores Meet With Vega GPU cores in New AMD Ryzen Mobile Processors
AMD Reports Rise in Quarterly Revenue
Globalfoundries and Intel to Talk About 10, 7nm at IEDM
GLOBALFOUNDRIES Introduces AutoPro Automotive Platform for Connected Cars
AMD Unveils the Embedded Radeon E9170 GPU Based on Polaris Architecture
AMD's Ryzen Threadripper CPUs Get NVMe RAID Support

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2017 - All rights reserved -
Privacy policy - Contact Us .