The amended agreement extends the partnership between the firms to ensure supply for AMD's growing business apart from giving supply assurance for AMD chips that serve the personal computing, data centre, embedded, as well as other growth markets
Wafer production by GlobalFoundries at its Fab 8 in Malta. (Credit: GlobalFoundries)
GlobalFoundries has agreed to amend its wafer supply agreement (WSA) with AMD to increase the volume of chips it will supply to the latter for a total amount of around $2.1bn.
The parties have also extended the terms of the agreement to secure supply till 2025.
In May 2021, AMD had agreed to buy nearly $1.6bn worth of wafers from GlobalFoundries between 2022 and 2024.
GlobalFoundries has been supplying high-performance chips for AMD for over 12 years. The amended agreement extends their partnership to ensure supply for AMD’s growing business, said the semiconductor contract manufacturing and design company.
Besides, the amendment gives supply assurance for AMD chips that cater to the personal computing, data centre, embedded, as well as other growth markets.
GlobalFoundries CEO Tom Caulfield said: “We have been working closely with our customers for more than a year to help address the ongoing supply-demand imbalance in our industry.
“Our amended agreement with AMD is a prime example of our customers’ desire and willingness to secure long-term supply. This agreement not only increases the volume of chips we will be producing for AMD, it also secures and extends their supply through 2025.”
Earlier this month, the BMW Group signed an agreement with high-tech microchip developer Inova Semiconductor and GlobalFoundries to secure the supply of several million microchips per year. The microchips will be used by the BMW Group in the ISELED smart LED technology, which is planned to be deployed in the BMW iX and implemented in further models.
In July 2021, GlobalFoundries disclosed plans to construct a new semiconductor factory in Malta, New York. The chip manufacturer also announced an investment of $1bn to expand production at its existing Fab 8 in an effort to address the global chip shortage.