AMD gives up its GlobalFoundries stake, gets more fab flexibility

GlobalFoundries logoAMD is shedding its stake in GlobalFoundries, the semiconductor foundry that it spun off in 2009. Initially, AMD used GlobalFoundries as its sole manufacturer, but it has increasingly turned to other companies such as TSMC after GlobalFoundries struggled to build working chips on its 32nm process.

At GlobalFoundries' creation, AMD held a 34.2 percent share. Since the spin-off, AMD has reduced that share, and now it is giving up its final 8.8 percent, leaving GlobalFoundries wholly owned by the United Arab Emirates government, via its Mubadala Development investment vehicle.

In addition to giving up its equity stake, the chip designer has also agreed to new terms for GlobalFoundries' manufacturing services. Under the previous agreement, GlobalFoundries had an exclusive right to build 28nm processors for AMD. Under the new agreement, AMD can now use TSMC's 28nm process—though it still plans to use GlobalFoundries in some capacity.

The new agreement gives AMD greater flexibility to choose its manufacturing partners—valuable in the light of GlobalFoudries' problems building the chips AMD needs—but at a price: AMD has agreed to pay GlobaFoundries $425 million cash over the next two years, and says that the deal will cost it a total of $703 million.

Flexible processor design and fabrication is central to AMD's plans for 2012-13, and with GlobalFoundries' continued difficulties, the decision to negotiate more flexible manufacturing terms makes some sense.

Source: Ars Technica

Tags: AMD, GLOBALFOUNDRIES

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Galaxy Note10 really is built around a 6.7-inch display
 
You may still be able to download your content
 
Facebook, Messenger and Instagram are all going away
 
Minimize apps to a floating, always-on-top bubble
 
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
 
The 2001 operating system has reached its lowest share level
 
The entire TSMC 5nm design infrastructure is available now from TSMC
 
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
1234567
891011121314
15161718192021
22232425262728
2930     




Poll

Do you use microSD card with your phone?
or leave your own version in comments (16)