AMD has amended the contract of work with GlobalFoundries

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POSTER: computer news   ||   AMD HAS AMENDED THE CONTRACT OF WORK WITH GLOBALFOUNDRIES	DATE:2016-09-01
After AMD company sold the factories to GlobalFoundries company , it was forced to conclude a service contract - to produce processors by  foreign production.  The first agreement was signed in the winter of 2011 and anticipated mandatory quarterly payment of $ 300 million. Subsequently, AMD has repeatedly violated the agreement on mandatory procurement volumes and from time to time to pay fine.  Currently, as we know, AMD relies almost exclusively on GlobalFoundries and orders  not only the CPU, including engineering Zen is only samples but also GPU generation Polaris.  Clearly, it was time to bring in the cooperation agreement with GlobalFoundries lot of significant amendments.  And such amendments made yesterday.   The new agreement is concluded for a period of 5 years, not one year, as before.  Action amendments ends on 31 December 2020.  The contract includes the manufacture and supply of processors and AMD graphics processors with the norms of 14 nm and 7 nm (in the future).  Current products include Zen processors and GPU Radeon Polaris.  Thus for now AMD establishes the right to produce certain products on competing with GlobalFoundries companies.  Obviously, this will be the factories TSMC and Samsung companies.   When working with GlobalFoundries mandatory annual procurement volumes are set for all five years of the contract at a fixed price per plate.  The price for 2016 is set as the set structure formation in the following years, on an annual basis prices.  To confirm the agreement, AMD in the next 12 months will pay GlobalFoundries company  one-time fee of $ 100 million. To this end, in particular, AMD takes a loan of $ 335 million. In the future the mandatory quarterly payments of GlobalFoundries will be adjusted depending on the volume ordered by AMD . In addition, AMD has entitles Mubadala Development Company or its subsidiaries fully or partially redeem 75 million of its common stock at a fixed price of $ 5.98 per share .  Thus, it risks losing more of the order of 2.2% of its share.  This offer is valid until 29 February 2020.   Related Products :

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