Tuesday, June 30, 2015
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Google Loses Appeal In Case Against Oracle
Google Search Is Favoring The company's Own Services: researchers
Nokia, SKT Team Up On 5G Research
Samsung Has Sold 1 mln Units Of The Z1 Tizen Smartphone
Samsung To Exit The HDD Business
Samsung to Stop blocking Windows Update With New Software
Apple Brings Force Touch Feature To New iPhones
Sony PlayStation Vue Will Soon Not Require A Game Console
Active Discussions
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
How to burn a backup copy of The Frozen Throne
Help make DVDInfoPro better with dvdinfomantis!!!
Copied dvd's say blank in computer only
menu making
Optiarc AD-7260S review
 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
AMD Fury X Reviews Show Impressive Performance That Does Not Put Nvidia's 980 Ti Aside
AMD Considers Spinoff, Breakup: report
AMD Officially Launches The Retail Radeon 300 Series
E3: New AMD Radeon R9 and R7 300 Series Graphics Line-Up Takes Advantage Of New HBM Technology
AMD Targets Notebooks and All-in-Ones With 6th Generation A-Series Processor
GLOBALFOUNDRIES Provides Design Flows For 14nm FinFET Chips
New AMD A10-7870K APU Promises Performance And Affordability
Upcoming Video Cards Form AMD and Nvidia Appear Online
GLOBALFOUNDRIES Releases New Low-Power 28nm Solution for Mobile and IoT Applications
AMD Details Preps High Bandwidth Memory Stack
New AMD Radeon 300 Series Are Rebrands
AMD Outlines Future Growth Plans

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .