News AMD and GlobalFoundries renegotiate 32nm deal

Deal designed to safeguard AMD against 32nm production issues.

http://www.bit-tech.net/news/hardware/2011/04/05/amd-and-global-foundries-good-32nm-chips/1

 

Trying to decide if this means anything or not. It will probably save AMD a few bucks, but if GF can't produce good yields then it doesn't matter what AMD is paying for them.. In addition, I think GF is doing everything it can to produce quality product, and the costs will probably even out in the end.

 

Hopefully AMD's new chips will be a match for Intel and thus provide some serious competition, choice and competitive pricing.

 

i read somewhere else that although it's not ideal for Global Foundries they're still massively above any warning level on the money they make per wafer. Probably why the deal was renegotiated so cleanly.

 

I they start matching Intel's performance then expect prices that match Intel

 

Hopefully this will improve the yields, and AMD will be able to release Bulldozer/ Zambezi sooner, which will be able to compete with Sandy/ Ivy bridge, and we will get nice, fast, cheap as chips, chips!
/optimism

 

Shouldn't change anything, I don't suppose GF has been skimping on quality "just-because-they-can".
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.

 

Nothing in this topic or posts suggest that by doing this, it would somehow improve the quality of the AMD product.

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.

 

From what I have read, yields are fine as it is. This renegotiation is curious to say the least.

 

Another thing to keep in mind is that both companies are owned by the same people, i think this is simply redistributing of some of the GloFo profit to AMD.

 

GF (GlobalFoundries) are a good company and all but GF get in that FAB and make me some chips.