AMD cuts wafer orders

AMD, in the last quarter of this year significantly reduced wafer orders from GlobalFoundries. According to the original agreement, AMD was supposed to but $500 Million worth of wafers from GlobalFoundries, but that figure is now down to about $ 115 million. AMD CEO Rory Read tried to cool the situation by saying “Today's announcement demonstrates that the long-term strategic partnership between AMD and GlobalFoundries continues to benefit both companies,” but it's obvious that this was something that AMD certainly did not want.

The reason for the reduction in orders is weak demand for chips in the global market [in particular AMD’s CPUs – Ed], but also AMD's strategy of saving and cost-cutting. However, because of the termination of the original contract AMD has to pay some penalties to GlobalFoundries, totaling $320 million by the end of next year, of which $80 million must arrive as early as this quarter.

read more (military parkas): http://www.decryptedtech.com/news/amd-cuts-wafer-orders.html