AMD recasts foundry deal to save cash
Peter Clarke, EETimes
12/7/2012 12:45 PM EST
LONDON – Struggling processor vendor Advanced Micro Devices Inc. said it has renegotiated its wafer supply agreement with foundry partner Globalfoundries Inc., moving on to fixed-price wafer deal to reduce its costs during the fourth quarter and into 2013.
Under terms of the deal, AMD (Sunnyvale, Calif.) will be liable for a "take-or-pay" termination fee of $320 million, but Globalfoundries (Milpitas, Calif.) has agreed to accept a promissory note for more than half the amount.
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