Currently, AMD markets many products manufactured by GlobalFoundries with its 12LP and 14LPP manufacturing technologies. Over the next few years, the company will have to supply many customers with these products for embedded and commercial applications (p.B. Ryzen Pro, Ryzen Embedded and EPYC processors), not to mention the 14nm 14nm nozzle that will be used in the server and desktop processors of AMDs Next Gen. Thus, although AMD`s state-of-the-art parts are starting to grow to 7nm, AMD will still have a strong demand for the manufacture of 12nm and will need GlobalFoundries in the future. The result is that from then on, AMD has planned all of its main 7nm and GPUs processors currently announced to use TSMC`s 7nm process, and AMD remains free to tap Samsung if you wish. In the past, AMD will continue to rely heavily on GlobalFoundries for large nodes on the latest CES update, as it will remain AMD`s long-term strategic provider for 12nm and up. The new agreement sets out AMD`s purchase commitments and GlobalFoundries prices until 2021. This is because the smelter business began to harm an increasingly solvent AMD and that at the time, it did not make sense to keep such an intensive subsidiary in research and development. Ironically, although the company was relocated, AMD was still required to purchase a „quota“ of wafers from the company each year and could not go to other pure smelters without heavy penalties. AMD said on Tuesday it had changed its wafer delivery agreement with GlobalFoundries.
Under the new agreement, the two companies have agreed on the prices and quantities of wafers that AMD will buy from the U.S. smelter by at least 2021. The seventh wafer change between the two parties marks the latest change in the way the two companies do business with each other amid changing business strategies on both sides. But it won`t be the last time either; While the latest change sets the purchasing targets for 2021, the entire CES itself will continue until March 1, 2024. AMD must purchase wafers from GF, regardless of the node or performance of the process. It is possible that GF could move to a 10nm (nanometer) node by the end of 2018 if AMD plans to launch its next-generation GPUs and APUs. If GF is unable to meet the 2018 schedule, AMD will lose technologically because it does not have the flexibility to switch smelter partners.