AMD updates Globalfoundries deal buys less wafers

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Dec 7, 2012.

  1. Hilbert Hagedoorn

    Hilbert Hagedoorn Don Vito Corleone Staff Member

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    AMD has amended its wafer supply agreement with Globalfoundries. Under the new agrement AMD significantly reduced its wafer purchase commitments, the chip designer currently estimates will will purcha...

    AMD updates Globalfoundries deal buys less wafers
     
  2. heffeque

    heffeque Ancient Guru

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    I this something good or something bad? I'm thinking bad, but... maybe someone can give us some educated comment on this matter?
     
  3. Noisiv

    Noisiv Ancient Guru

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    $320 million in penalties for AMD

    Did I read that correctly?
     
  4. sykozis

    sykozis Ancient Guru

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    Yes Noisiv, unfortunately you did. AMD is being penalized $320 million for reducing their wafer purchases from GloFo.... Considering the issues they've had with GloFo, they should get a pass on that penalty imho....
     

  5. morbias

    morbias Don TazeMeBro Staff Member

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    wat


    This can't be right, surely?

    AMD paid $320M in order to reduce their Q4 wafer commitment by $375M, so they basically saved themselves a measly $55M outgoing on new silicon but have lost themselves 78% of saleable product in the process? Is that not the worst business decision of the millennium?

    If you're going to have that much excess product then just sell it for less, even if you sell it for a loss you're not going to lose $320M unless you try really exceptionally hard.
     
  6. BlackZero

    BlackZero Ancient Guru

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  7. JohnMaclane

    JohnMaclane Ancient Guru

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    I think the savings are much larger then the 55 million.

    The wafers would still have to be cut and packaged, a process which is not exactly cheap. Then there are all the logistical costs saved and the fact that the PC market is shrinking.

    So while its sad news I think AMD is not retarded and did this for a reason, plus 55 million is by no measure a small number.
     
  8. heffeque

    heffeque Ancient Guru

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    I knew it wasn't as easy as "it's bad news" :p
     

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