On May 13, Wall Street disclosed a regulatory document, AMD revised the company's capacity supply agreement with GlobalFoundries.

Although the amendment does not seem to be big news, nor does it involve in-depth transaction and payment details, but in the context of a global chip shortage, the details are still worth seeing.

The revised agreement strictly stipulates the minimum annual production capacity of GlobalFoundries' 12nm and 14nm nodes before December 31, 2024. This capacity will support AMD's cutting-edge products (such as CPUs and GPUs) and Ryzen and EPYC processors. TSMC will still provide 7nm computing core foundry for these products.

The two companies negotiated and finalized the 2022-24 price and new annual wafer procurement targets. AMD currently estimates that they will purchase approximately US$16 billion in wafers during 2022-24, and the company will pay scheduled payments in 2022 and 2023.

Importantly, the revised agreement cancels all previous exclusivity commitments, which allows AMD to enjoy "full flexibility" to transfer any product produced at any process node to other foundries.