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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
SYS-CON.TV
AMD Cuts Its Chip Orders
It has also started using Taiwan Semiconductor Manufacturing Company for some advanced chips

What with PC demand eroding, AMD is following Intel in cutting back on chips.

It's going to have to pay Globalfoundries, its manufacturer since it sold it its plants, $320 million not to make too many processors.

AMD has also started using Taiwan Semiconductor Manufacturing Company for some advanced chips.

It was supposed to buy about $500 million worth of wafers from Globalfoundries in the fourth quarter for a total of $1.5 billion in purchases this year.

Now it finds it may only need $115 million of the stuff in Q4 and has agreed to take $1.15 billion worth next year as well as $250 million in wafers in 1Q14.

AMD has operated under a fixed-supply contract that requires it to make set payments to its supplier.

Given AMD's cash crunch, the termination fee paid to Globalfoundries will be spread over several quarters: $80 million by December 28, $40 million by April 1, and a $200 million promissory note due December 31, 2013.

AMD could save at least $65 million this way and may stint on underwriting Globalfoundries' R&D.

AMD lost $157 million in Q3 on revenues that dropped 25% year-over-year.

It also says it's going to sell and lease back its facilities in Austin, Texas in hopes of raising another $150 million-$200 million.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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