AMD updates Globalfoundries deal buys less wafers
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heffeque
I this something good or something bad? I'm thinking bad, but... maybe someone can give us some educated comment on this matter?
Noisiv
$320 million in penalties for AMD
Did I read that correctly?
sykozis
Yes Noisiv, unfortunately you did. AMD is being penalized $320 million for reducing their wafer purchases from GloFo.... Considering the issues they've had with GloFo, they should get a pass on that penalty imho....
morbias
wat
This can't be right, surely?
AMD paid $320M in order to reduce their Q4 wafer commitment by $375M, so they basically saved themselves a measly $55M outgoing on new silicon but have lost themselves 78% of saleable product in the process? Is that not the worst business decision of the millennium?
If you're going to have that much excess product then just sell it for less, even if you sell it for a loss you're not going to lose $320M unless you try really exceptionally hard.
JohnMaclane
heffeque
I knew it wasn't as easy as "it's bad news" :P