Advanced Micro Devices (AMD.O) has amended their agreement with GlobalFoundries and will be acquiring $2.1 billion worth of silicon wafers from them.
In May of 2021, AMD and GlobalFoundries had signed an agreement in which AMD would buy over $1.6 billion worth of chips from 2022 to 2024. This was in conjunction with a filing by the US Securities and Exchange Commission.
However, there was a regulatory filing on the 23rd of December 2021. This led to an amendment in the agreement, which has resulted in Global Foundries selling approximately $2.1 billion worth of silicon wafers to AMD from 2022 to 2025. The silicon wafers that AMD is buying are large discs that are needed to make computer chips.
GlobalFoundries was created in 2009 when AMD started manufacturing chips and became their leading supplier. But, in 2018, GlobalFoundries decided to quit its production of high-tech chip-creating tech. After that, AMD started working with Taiwan Semiconductor Manufacturing Co to receive ‘chiplets’ from them, which are one of the most essential parts of their computer processors. TSMC is now their main supplier, but AMD still needed several critical components from its old partner GlobalFoundries for the process of tying their chips together.