AMD plans to buy $1.6 billion in silicon wafers from GlobalFoundries

Advanced Micro Devices Inc. stated late Thursday it plans to buy about $1.6 billion in silicon wafers from GlobalFoundries Inc. over the subsequent few years.

In a Securities and Exchange Commission submitting, AMD

stated it entered right into a seventh modification to its wafer provide settlement with GlobalFoundries “to extend GF’s capacity commitment and wafer pricing to the company under the backdrop of the current global supply environment.”

Under the modification, AMD and GlobalFoundries agreed to pricing and buy targets from 2022 to 2024, with AMD on the hook to pay GF “a portion” of the distinction that it doesn’t buy below the targets.

GlobalFoundries was created in 2009 when AMD spun off its fab capability and partnered with Advanced Technology Investment Co. “Fabs,” in chip parlance, are the extremely specialised manufacturing crops that produced the silicon wafers wanted to make semiconductors.

AMD shares ticked 0.1% greater after hours, following a 2.1% decline to end the common session at $73.09. While shares are up 40% over the previous 12 months, they’re additionally 26% off their January highs.

Source link