By Josh Beckerman
Advanced Micro Devices Inc. amended its wafer supply agreement with Globalfoundries Inc., extending capacity commitments and wafer pricing "under the backdrop of the current global supply environment."
A prolonged semiconductor shortage has affected production of cars, appliances and computers.
AMD said the Globalfoundries amendment modifies certain terms applicable to wafer purchases at the 12 nm and 14 nm technology nodes for the period from Wednesday through the end of 2024.
Globalfoundries agreed to a minimum annual capacity allocation to AMD for 2022, 2023 and 2024. The amendment also removes all prior exclusivity commitments and provides AMD with full flexibility to contract with any wafer foundry for all products manufactured at any technology node, AMD said.
AMD currently estimates it will buy about $1.6 billion of wafers for years 2022 to 2024 under the amendment.
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(END) Dow Jones Newswires