Posted on Thursday, October 25 2018 @ 10:18 CEST by Thomas De Maesschalck
During the Q3 2018 earnings call, AMD CEO Lisa Su
confirmed the firm is in talks with GlobalFoundries to amend its wafer supply agreement with GlobalFoundries. The latter recently dropped development of advanced nodes like 7nm, which automatically pushed AMD to TSMC. Su didn't go into the details but said talks are "making good progress":
Harlan Sur - JPMorgan Securities LLC
Great. Thanks for the insights there. And then, on the wafer supply agreement with GLOBALFOUNDRIES, now that they're not going to be supporting 7-nanometer, you'll be moving I think most of your 7-nanometer client products to TSMC. And as of right now, I think you guys still need to pay them a fee for every 7-nanometer product you produce at TSMC. Can you just give us an update on the new wafer supply agreement that doesn't include 7-nanometers? Obviously, this should be beneficial for your gross margins.
Lisa T. Su - Advanced Micro Devices, Inc.
Yes. So, look, GLOBALFOUNDRIES is a good partner. They continue to be a very important partner for us. We are in discussions with them about how to update our agreement post their strategy updates, and we're making good progress on that. So, we'll give you more detail as we get closer, but overall, GLOBALFOUNDRIES continues to be an important partner for us.
