AMD and GlobalFoundries renegotiate 32nm deal
AMD is now paying Global Foundries on a per-chip basis, rather than per-wafer.
The revised agreement replaces the previous per-wafer payment deal that AMD's had since it span off its manufacturing wing to create Global Foundries.
In a press statement, AMD said that from now on its 'price for 32nm products will be based on good die,' implying that AMD was previously seeing a few too many duff dies per 32nm wafer for its liking, and therefore only wanted to pay for working chips.
As an added incentive, AMD has also pledged to play a quarterly sum to GlobalFoundries next year, on the condition that the chip fabricator meets 'specified conditions related to continued availability of 32nm capacity' at the beginning of the year.
Are you looking forward to AMD’s offerings this year? Are you worried that problems at GlobalFoundries could hold back the release of AMD’s forthcoming processors? Let us know your thoughts in the forums.
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Discuss in the forums ReplyI they start matching Intel's performance then expect prices that match Intel
/optimism
Also, AMD managed the place long enough to know what kind of yields are normal.
i wouldn't expect that so soon. if amd exceeds intel in performance, they'll still have the lower price because they want to attract more users. the only thing keeping amd alive right now is their bargains, if they charge more than intel immediately after their next releases, that leaves no one with a good deal. even back when amd released the athlon 64, that was overall faster but intel still charged more.
if amd continuously exceeds intel in performance (which is unlikely), then expect a price raise.
Why assume it would?
It can't improve the product, but it probably will help to keep the price of new AMD processors stable if they don't have to repay the losses caused by poor yields. More importantly though, it sends a message to GF to hold to their commitments on new processes: Intel 32nm has been out for one and a half years after all. Since roadmaps are saying that Intel could have 22nm ready by the end of the year (probably no products until early 2012), AMD wants the next step, a 28nm bulk process, ready from GF as soon as possible.
Luckily, there are other companies who are also pushing GF for 28nm (namely ARM), unlike 32nm where AMD was GF's only customer, so it is hopefully more likely to stay on track.
Also, have another article that puts the deal in a little more perspective: http://semiaccurate.com/2011/04/04/amd-and-global-foundries-agreement-not-what-it-seems/
Historically, when AMD has matched Intel's performance, Intel's prices have dropped like a rock
Yup, their respective prices tend to drop somewhat in a mini price battle. I'm sure consumers would be happy for cheaper Sandy Bridges.