AMD sheds stake in GlobalFoundries

Summary:AMD has changed its partnership with the semiconductor manufacturer, ditching its financial stake and renegotiating wafer prices

AMD has revamped its partnership with GlobalFoundries, the semiconductor fabrication operation that spun out of the chipmaker in 2009.

As part of the deal, AMD will no longer have an equity stake in GlobalFoundries. The move is the latest by new chief executive Rory Read to refocus AMD.

Last week, the company bought SeaMicro in an effort to enter the low-power cloud server market.

Under the new deal with GlobalFoundries, AMD renegotiated its wafer pricing. In 2012, AMD will buy wafers under a "take or pay" arrangement.

For more on this ZDNet UK-selected story, see AMD ditches stake in Globalfoundries on ZDNet.com.


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Topics: Processors

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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