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

 
 
Highlights of the new feature update include a tweaked interface with Fluent Design elements
 
It’s now open to third-party developers and designed for smart home devices
 
Prices start at $1499 for the 13.5-inch model and $2499 for the 15-inch model
 
Users claim the Start menu isn’t working after the upgrade
 
It will release its first all-purpose AI chips by the end of 2017
 
Android 8.1 Oreo arriving on Pixel phones "in the coming weeks"
 
The Snapdragon 636 also comes with support for modern ultra-wide FHD+ displays
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
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
293031    




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)