AMD Amends Wafer Supply Agreement With GLOBALFOUNDRIES
April 01 2014 - 4:15PM
Marketwired
AMD Amends Wafer Supply Agreement With GLOBALFOUNDRIES
SUNNYVALE, CA--(Marketwired - Apr 1, 2014) - AMD (NYSE: AMD)
today announced that it amended its Wafer Supply Agreement (WSA)
with GLOBALFOUNDRIES Inc. for 2014. Under the terms of the
amendment, AMD and GLOBALFOUNDRIES agreed on purchase commitments
for 2014 and established fixed pricing and other terms of the WSA
which apply to products AMD will purchase from GLOBALFOUNDRIES.
Under this amendment AMD expects to pay GLOBALFOUNDRIES
approximately $1.2 billion in 2014. These purchases contemplate
AMD's current PC market expectations and the manufacturing of
certain Graphics Processor Units (GPUs) and semi-custom game
console products at GLOBALFOUNDRIES in 2014. The 2014 amendment
does not impact AMD's 2014 financial goals including gross
margin.
"The successful close of our amended wafer supply agreement with
GLOBALFOUNDRIES demonstrates the continued commitment from our two
companies to strengthen our business relationship as long-term
strategic partners, and GLOBALFOUNDRIES' ability to execute in
alignment with our product roadmap," said Rory Read, president and
chief executive officer, AMD. "This latest step in AMD's continued
transformation plays a critical role in our goals for 2014."
About AMD
AMD (NYSE: AMD) designs and integrates technology that powers
millions of intelligent devices, including personal computers,
tablets, game consoles and cloud servers that define the new era of
surround computing. AMD solutions enable people everywhere to
realize the full potential of their favorite devices and
applications to push the boundaries of what is possible. For more
information, visit www.amd.com.
Cautionary Statement This release contains forward-looking
statements concerning AMD, its operating model, estimated payments
to GLOBALFOUNDRIES for wafer purchases under the Wafer Supply
Agreement in 2014, its market expectations for its products and
manufacturing plans and the impact of the Wafer Supply Agreement
amendment on its 2014 financial goals including gross margin, which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are commonly identified by words such as "would," "may,"
"expects," "believes," "plans," "intends," "projects" and other
terms with similar meaning. Investors are cautioned that the
forward-looking statements in this release are based on current
beliefs, assumptions and expectations, speak only as of the date of
this release and involve risks and uncertainties that could cause
actual results to differ materially from current expectations.
Material factors and assumptions that were applied in making these
forward looking statements include, without limitation, AMD's
current expectations regarding GLOBALFOUNDRIES manufacturing yields
and wafer volumes and demand for its products. Risks include the
possibility that Intel Corporation's pricing, marketing and
rebating programs, product bundling, standard setting, new product
introductions or other activities may negatively impact AMD's
plans; AMD may be unable to develop, launch and ramp new products
and technologies in the volumes that are required by the market at
mature yields on a timely basis; that AMD's third party foundry
suppliers will be unable to transition its products to advanced
manufacturing process technologies in a timely and effective way or
to manufacture AMD's products on a timely basis in sufficient
quantities and using competitive technologies; AMD will be unable
to obtain sufficient manufacturing capacity or components to meet
demand for its products or will not fully utilize its commitment
with respect to GLOBALFOUNDRIES microprocessor manufacturing
facilities that customers stop buying AMD's products or materially
reduce their operations or demand for AMD's products; that AMD may
be unable to maintain the level of investment in research and
development that is required to remain competitive; that there may
be unexpected variations in the market growth and demand for its
products and technologies in light of the product mix that AMD may
have available at any particular time or a decline in demand; that
AMD will require additional funding and may be unable to raise
sufficient capital on favorable terms, or at all; that global
business and economic conditions will not improve or will worsen;
that demand for computers will be lower than currently expected;
and the effect of political or economic instability, domestically
or internationally, on AMD's sales or supply chain. Investors are
urged to review in detail the risks and uncertainties in AMD's
Securities and Exchange Commission filings, including but not
limited to the annual report on Form 10-K for the year ended Dec.
28, 2013.
AMD, the AMD Arrow logo and Radeon are trademarks of
Advanced Micro Devices, Inc. Other names are for informational
purposes only and may be trademarks of their respective
owners.
Media Contact Drew Prairie 512-602-4425 drew.prairie@amd.com
Investor Contact Ruth Cotter 408-749-3887 ruth.cotter@amd.com
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