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Monday, 04 April 2011 10:52

AMD cracks down on Global Foundries

Written by Nick Farell
globalfoundries

Will only pay for chips that work
It seems that the close relationship between AMD and its off-shoot Global Foundries has changed with things getting down to something resembling a proper business agreement.

It looks like Global Foundries had been given the lee-way of being paid by AMD even if the chips it made didn't work. Now the pair have changed the agreement covering chips made on 32 nanometer and included in the agreement was the somewhat reasonable demand that AMD only pay for chips that go.

The revision is intended to give Global Foundries an incentive to improve production of 32-nanometer chips this year. Under their previous deal, AMD paid for all chips produced at cost of production plus a markup for Global Foundries.

AMD estimates it will pay Global Foundries $1.1 billion to $1.5 billion in 2011 and $1.5 billion to $1.9 billion in 2012 for outsourced manufacturing. That compares with about $1.2 billion in 2010. AMD is also the biggest customer of Global Foundries, which Abu Dhabi created out of manufacturing operations it bought from AMD and Singapore’s Chartered Semiconductor Manufacturing Ltd. in 2009.

The new agreement increases AMD’s commitment to having new processors with built-in graphics capabilities manufactured by Global Foundries, the statement said. AMD currently uses Taiwan Semiconductor Manufacturing to make some of its graphics products.


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Comments  

 
+23 #1 Jurassic1024 2011-04-04 11:10
The revision is intended to give Global Foundries an incentive to improve production of 32-nanometer chips this year.

Can't wait. i need a new CPU and motherboard. just no more delays AMD!
 
 
+21 #2 yourma2000 2011-04-04 11:33
My computer's finally [censored]ed so depending on how long bulldozer and the AMD 900 chipset series takes I might look into upgrading
 
 
-1 #3 deadspeedv 2011-04-04 12:10
Cool. For a moment there I sore 32nm and thought that cant be right since they skipped 32nm and were going to 28nm, but then I read "new processors with built-in graphics capabilities". Oh these are CPU's and not graphics cards. 28nm were going to be done by TSMC
 
 
+4 #4 Steve-O 2011-04-04 12:20
...Or maybe the yields are just fine and AMD/GF wants to confuse the entire world. The same people own both companies, so they are just trying to "redistribute the wealth".

Watch in 6 months when AMD sings the praises of GF, and makes everyone look like geniuses....but no one actually did anything (but no way to prove or disprove my statements above).
 
 
+3 #5 Super XP 2011-04-04 13:06
It sounds to me the fall of 2011 (Oct - Nov) we will be able to buy Bulldozer CU's and 900 series mobo's. I am hoping for much sooner though...
 
 
+4 #6 Xyllian 2011-04-04 13:19
I dont think it was such a terribad thing as others seem to think. GloFo gets to manufacture Llanos, next gen lowpower fusion, bulldozer and souther islands gpus. IF they can do it, therefor if GloFo were to fud up AMD wouldnt be in as much trouble as they could have.

Perfectly fair deal: GloFo gets to manufacture a shiteload of chips for amd and as a security for the later they will have to deal with possible fuds themselves.
 
 
-27 #7 Warrior24_7 2011-04-04 13:54
Really now? I wonder if Apple will do the same? :lol:
 
 
+19 #8 1d10t 2011-04-04 14:19
Quoting Warrior24_7:
Really now? I wonder if nVidia will do the same? :lol:


fixed :lol:
 
 
+10 #9 The_Countess 2011-04-04 14:39
Quoting 1d10t:
Quoting Warrior24_7:
Really now? I wonder if nVidia will do the same? :lol:


fixed :lol:


AMD is increasing the number of chips it's buying. so no its unlikely that nvidia will do the same in the near future.
 
 
+22 #10 Super XP 2011-04-04 15:14
Analysing most of your posts, it seems you are against competition. In your world, you would prefer NVIDIA and Intel rule the PC industry and monopolize the living crap out of everything so we won’t have any more competition or true innovation.

Is this what you want? Would you rather have overpriced Graphics and CPU’s put together with no innovation and charges you an arm & a leg? By your posts, this is what I am reading from you.

Thank goodness we have AMD consistently pushing innovation and in turn driving strong competition and fair product pricing... Oh but that is a bad thing in your eyes right... :lol:

Quoting Warrior24_7:
Really now? I wonder if Apple will do the same? :lol:
 

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