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AMD Reports Financial Results and Update on Wafer Supply Agreement


Guest_Jim_*

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In August of last year, Global Foundries surprised many by announcing it was putting its work on a 7 nm manufacturing node on indefinite hold. Not only did this mean TSMC would be without competition at this node, it could also impact AMD, which has had a wafer supply agreement with Global Foundries for years. The WSA has required AMD purchase so many wafers and therefore chips from the company and that it pay a fine for going to another foundry. Along with AMD's report on the fourth quarter and annual 2018 financial results, it also revealed a seventh amendment to the WSA. For the 12 nm node and above, the purchase commitment remains from 2019 to 2021. However, AMD is free to purchase wafers at other foundries on 7 nm nodes and beyond without royalties or one-time payments to Global Foundries.

Besides this amendment being shared, AMD's financial results for 2018 were quite strong, reporting the company's first fully profitable year for a while. This year could also prove strong for the company as it will see the release of Zen 2-based CPUs and Navi-based GPUs. Though the details are light on Navi thus far, it is to be a 7 nm product and there are high expectations for it.

Source: AMD and Anandtech



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