The long process of separation from the independent company Globalfoundries will be formally completed this year. AMD will sell to owners of Globalfoundries remaining (14%), and the holder will be ATIC company from UAE.
Globalfoundries reported some interesting facts. In the period from the third to the fourth quarter last year shipments of 32 nm AMD processors increased by 80%. Now, third processor AMD, produced by Globalfoundries, released on 32 nm technology. This year, Globalfoundries plans to spend $ 3 billion to expand production facilities in Singapore, Germany and New York. In the latter case, Fab 8 has already started deliveries of prototypes, created in collaboration with IBM.
Companies also revised the terms of agreement under which AMD processors are ordered from Globalfoundries. Now the cost of silicon wafers, purchased from the latter company will be determined by the principle of compulsory purchase products or pay penalty, and mandatory quarterly payments will be canceled. In other words, even if AMD will not be satisfied with the quality of Globalfoundries products, it will still be paying a certain minimum amount. The magnitude of this amount will be determined in negotiations between the parties in transaction.
Along the way, was terminated agreement with the exclusive Globalfoundries right to supply AMD processors, released on 28 nm technology. AMD refused the services of Globalfoundries to produce processors Wichita and Krishna. Instead in this technology will be released processors Kaveri and Kabini , but this will happens only in 2013. As compensation, AMD will pay Globalfoundries a total of $ 425 million, divided into four equal quarterly tranches.