Item 1.01 Entry into a Material Definitive Agreement
First Amendment to the Amended and Restated Seventh Amendment to the Wafer
Supply Agreement
On December 23, 2021, Advanced Micro Devices, Inc. (the "Company") entered into
the First Amendment (the "Amendment") to its Amended and Restated Seventh
Amendment to the Wafer Supply Agreement (the "A&R Seventh Amendment") with
GLOBALFOUNDRIES Inc. ("GF") to extend GF's capacity commitment and wafer pricing
to the Company.
The Amendment modifies certain terms of the Wafer Supply Agreement applicable to
wafer purchases at the 12 nm and 14 nm technology nodes by the Company for the
period commencing on December 23, 2021 and continuing through December 31, 2025.
GF agreed to increase the minimum annual capacity allocation to the Company for
years 2022 through 2025. Further, the parties agreed to new pricing and annual
wafer purchase targets for years 2022 through 2025, and modified the
pre-payments agreed to by the Company to GF for those wafers in 2022 and 2023.
The Amendment does not affect any of the prior exclusivity commitments that were
removed under the A&R Seventh Amendment. The Company continues to have full
flexibility to contract with any wafer foundry with respect to all products
manufactured at any technology node. The Company currently estimates that it
will purchase approximately $2.1 billion of wafers in total from GF for years
2022 through 2025 under the Amendment.
The foregoing description is not complete and is qualified in its entirety by
reference to the Amendment, a copy of which will be filed with the Company's
Annual Report on Form 10-K.
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses