AMD, GlobalFoundries Wafer Supply Agreement Potentially Receiving 7th Amendment

Megalith

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A source with Wccftech claims AMD is in the midst of renegotiating its Wafer Supply Agreement (WAF) with GlobalFoundaries, following the latter’s decision to relent on 7nm production. As the new terms are said to be “mutually beneficial” to both parties, the amendment could mean surplus cash for AMD, which the company could put into R&D. Overclockers Club has a summary of the current relationship, in which AMD has to pay a penalty to GloFlo if it doesn’t meet certain quotas or decides to purchase from another fab, such as TSMC.

I have been told that AMD is certain they will agree to the new terms that are “mutually beneficial” to both parties. Keep in mind, my source did not actually state that the terms would benefit AMD, just that they would be ‘mutually beneficial’ and they are fairly confident AMD will agree to them. This implies that we are probably looking at increased leniency (in the annual wafer quota) and even better terms for the company.
 

SighTurtle

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Maybe they do have a actual source, but who wouldn't see this coming? GF fucked up, AMD has the upper leverage to change the terms to remove the penalties concerning other chips made at other foundaries.
 

GHRTW

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AMD will need many cpus to be produced in GF at 12nm until 7nm is expanded for all of their products (late 2019 at the earliest). So, it isn't too difficult to make that new agreement work imho.
 

Nobu

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for glofo yes, TSMC is producing AMD's 7nm chips instead. only thing i can think of that would be beneficial to glofo is amd increasing quota for their 12nm APU's.
Yeah, it'd make sense for AMD too, imo. Eventually tsmc is going to want to scale down their 12nm production, this would give AMD more leeway for 7nm, and allow them to continue producing less expensive chips at 12nm.

It would be nice if glofo eventually made another attempt at entering 7nm production, but I guess they'd need multiple big contracts for it to happen at this point.
 

viscountalpha

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I thought the rumor was that 7nm is on indefinite hold because of tooling issues and manufacturing issues?!
 

Mega6

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7nm is very complex and expensive to implement. Not many companies have the deep pockets to push into 7nm. GF decided it just wasn't worth it for them and besides - GF will be plenty busy producing 12 / 14nm parts for AMD. All AMD 7nm designs have be worked on with TSMC without issue(s). sampling now. 7nm Radeon arriving 2nd half 2018. 7nm Zen2 / Rome next year as well (Q4).

edit spelling context
 
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commissioneranthony

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it would be wise for AMD to have glofo produce their x399 / z490 chipsets at 14/12nm and use tsmc to produce their main chips. solves both problems. I do wonder how off tsmc 7nm will be from true 7nm tho :D
 

Mega6

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it would be wise for AMD to have glofo produce their x399 / z490 chipsets at 14/12nm and use tsmc to produce their main chips. solves both problems. I do wonder how off tsmc 7nm will be from true 7nm tho :D
It is comparable to intel 10nm feature wise. i get it though, node size used to correspond to M2 pitch, Now its a marketing ploy.
 

Uvaman2

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Were about to hit the limit of transistorized Si.
Yep...
But we will get creative.. and i bet we will see more components fused into one chip.. more parallel computing ( yes yes limit this, limit that) .. and i think we will see the era of truly huge chips... All this i would bet will happen before any magical organic computing takes over or anything like that.
 
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AMD should get rid of that dead horse of GF already. And since GF cannot keep with the industry competition, and their new focused low end production which is not compatible with AMD's roadmap, I think AMD can pursue a breach of contrach
 
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