AMD announced in GLOBALFOUNDRIES company (GF) wafer supply agreement (WSA) of the amended agreement for a long time, period of January 1, 2016 to December 31, 2020.
Five-year revised agreement will strengthen the strategy alliance, AMD also flexible planning 14 nanometers and 7 nanotechnology node wafer foundry services.
AMD President and chief executive officer Su Zi feng, "said Dr The five-year amended agreement not only strengthen the company's strategic outsourcing production relations and GLOBALFOUNDRIES, AMD also blueprint to build highly efficient products have higher elasticity, with 7 nanotechnology in 14 nanometers can nodes and more crystal industry cooperation. AMD's goal is to continuously achieve advanced wafer manufacturing technology resources, let us in the next few years the smooth development of many generations of outstanding products.
GLOBALFOUNDRIES company is located in the state of New York Malta (from Malta) eight plant (Fab 8) play a key role, a wafer foundry for drawing and processors AMD cutting-edge process, including the recently published AMD Radeon hd? Polaris architecture display card and upcoming "Zen" based processor.
In addition to modify WSA AMD processors and graphics processors in the agreements with half the customization product specific terms, the amended agreement also specification:
¡¤ cover during the period of 5 years from 2016 to 2016
For AMD, establish a comprehensive technical cooperation with GLOBALFOUNDRIES framework, based on the success of the 14 nanometers, continue to 7 nanotechnology node
Give AMD and other elastic cooperation foundries to produce a specific product
Set in 2016 by the end of 2016, during the annual wafer purchase goal, of which 2016 wafer fixed price, and for each wafer pricing rule is established
According to this part of the power, AMD will be:
, pay GLOBALFOUNDRIES company $100 million in cash, in the fourth quarter of 2016 to 2016 season 3 installment payment
Since 2017, the quarterly payment to company of GLOBALFOUNDRIES, amounting to see other foundries to purchase the wafer quantity
¡¤ grant jose Mubadala Development Company (Mubadala Development Company PJSC) its wholly owned subsidiary of West squadron Hitech L.P. Company warrants to buy AMD 75 million shares of common stock at $5.98 a share price, can be in all or part of the line before February 29, 2020. This authorization by jose mubadala company or its subsidiaries only line right after the total shareholding shall not exceed 19.99% of the AMD shares outstanding.
AMD is expected in 2016 third quarter amount of column about $335 million, in a one-off accounting expenses, including payment of $100 million, $235 million, and the value of the warrants.
AMD conference call
AMD held on August 31 for finance conference call, discuss the sixth revision content WSA agreement. Telephone conference contents to AMD investor relations page of website www.amd.com provides network replay, and continues to play up to 12 months.