AMD, Globalfoundries Restructure Relationship

[god_43]

Advanced Micro Devices Inc. and the company that manufactures most of its computer chips have restructured their relationship, a deal that will trigger a $703 million charge for AMD and give it more freedom to have some of its products made elsewhere.

The agreement announced late Sunday includes a $425 million payment by AMD to Globalfoundries, a company that includes AMD's former manufacturing operations in Germany. AMD also agreed to give up its remaining 8.8% stake in Globalfoundries.

AMD spun off what became Globalfoundries in 2009, and that company later acquired Singapore's Chartered Semiconductor Manufacturing Ltd. The company's operations in Dresden, Germany, currently make AMD's microprocessor chips, which compete with those sold by Intel Corp. Such chip-manufacturing services are known as foundries.

http://online.wsj.com/article/SB1000...185162962.html

[R101]

Could NVidia or Intel now buy GloFo?

That would be an interesting twist..

[AMDDeathstar]

Could NVidia or Intel now buy GloFo?

That would be an interesting twist..

AMD dumped it's fabs becaused it cost too much. The New York fab cost 4 billion itself.
Glofo fabs are worth 10 billion plus, so I doubt Nvidia could finance a deal to buy Glofo plus finance the next node upgrade.
Intel has the cash but I doubt ATIC would sell.

[bl4ckdr4g00n]

if either nvidia or intel buys glofo, then the whole AMD's GPU and CPU lines will entirely depend on TSMC. Isn't it a disaster?

[zanzabar]

i thought that goflow needed to be owned by amd to beable to make x86 parts.

and this seams like a terrible deal for amd, the sauidies could not make the fabs work correctly so amd should give them the rest of the company and pay them to do it?

[stuffme]

Glofo is terrible company, cant get anything working so amd is better off with TSMC.

[Darakian]

i thought that goflow needed to be owned by amd to beable to make x86 parts.

I believe intel dropped that under court order and that aside intel doesn't stand to gain by buying GloFlo anyway. That said AMD will probably still make most of their chips with GloFlo.

[Piotrsama]

Glofo is terrible company, cant get anything working so amd is better off with TSMC.

Because TMSC's track record has been flawless these last years
Yields and tuning problems with 40nm, 32nm canceled, and 28nm isn't doing that great.