Amid fears the global semiconductor crisis may be last until 2023, AMD chose to extend the purchase agreement with GlobalFoundry, giving it access to a larger proportion of the manufacturer’s output.
AMD has revealed the existence of the deal an 8-K regulatory submission submitted to the SEC earlier this week. The company is committed to buying $ 1.6bn worth of 12nm and 14nm node silicon wafers between now and December 31, 2024. It has not disclosed a breakdown of costs or the exact volume of output it has secured.
If AMD fails to meet the purchase obligation, it is committed to paying GlobalFoundry a portion of the difference between planned and actual spending. AMD also agreed to pay in advance for an unspecified portion of these wafers in advance.
The terms of the deal also saw AMD be released from the chains of the previous exclusivity agreement with GlobalFoundry, allowing it to acquire wafers from other fabs. This looks neat, given the rising demand for PCs and GPUs that has been witnessed over the past year, and the lengthy need that remains to be met.
A spokesperson for AMD sent us this note about the deal:
Last month, home analyst Canalys reported the strongest moon for PC shipments in nearly two decades, with annual growth of 55 per cent to 82.7m units. It predicts appetite will remain strong in the coming year, with increasing confidence among small business customers set to be the main driver of sales.
AMD has emerged relatively unscathed from the global semiconductor crunch. This is latest financial showed revenue increases of 93 per cent to $ 3.45bn, with sales of CPUs and GPUs exploding 46 per cent to $ 2.1bn. Enterprise revenue reached $ 1.3bn, up 287 per cent year-on-year.
Other chip -eating sectors of the economy have not been so fortunate, with car manufacturers particularly affected by the global semiconductor shortage. House analyst Alix Partners predicted what the automotive sector would do will miss with revenues of $ 110bn this year, from a previous dismal estimate of $ 61bn. ®
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