„Today, AMD announced that it is passing a seventh amendment to its wafer supply agreement with GLOBALFOUNDRIES Inc. (GF). GF remains a long-term strategic partner of AMD for the 12nm node and above, and the amendment sets purchase commitments and prices at 12nm or more for the years 2019 to 2021. The amendment provides AMD with total flexibility for purchases of wafers from any smelter at the 7nm node and, beyond that, without one-time payments or royalties. Our all-in-one agreement, also known as the Enterprise License Agreement (ELA), makes it easier and cheaper to purchase the right security technology. For a single price, we offer you access to our full range of security products. wccftech.com/amd-is-negotiating-a-7th-amendment-to-the-wsa-wafer-supply-agreement/ Our security choice contract allows you to purchase two or more security products with all the great benefits of the Cisco Purchase Program. Now prepare what you need and add more products at any time in the future. An important aspect of the new agreement is that if AMD does not meet the annual wafer purchase target for 2019, 2020 and 2021, GlobalFoundries will have to pay „part of the difference” between actual wafer purchases and this year`s target. Although this is not a take-or pay agreement reached by AMD with GlobalFoundries a few years ago, it still has to use and sell large quantities of 12LP and 14LPP tokens in order not to pay a fee to its partner. However, as AMD does not disclose the quantities of wafers available, it is not clear what impact their impact will be on the company`s product assortment in the years to come. AMD said on Tuesday it had changed its wafer delivery agreement with GlobalFoundries. Under the new agreement, the two companies have agreed on the prices and quantities of wafers that AMD will buy from the U.S.
smelter by at least 2021. The seventh wafer change between the two parties marks the latest change in the way the two companies do business with each other amid changing business strategies on both sides. But it won`t be the last time either; While the latest change sets the purchasing targets for 2021, the entire CES itself will continue until March 1, 2024.