Milestone hit GlobalFoundries 32nm, but AMD is still refusing to commit to the production of 28nm

GlobalFoundries announced today that it has shipped the 250 000th, wafer 32nm high-k metal gate (HKMG), alongside the usual claims that the 32nm ramp (despite the enormous problems that the company has met with Llano) is really faster/better/more successfully than the 45nm ramp before it. We feel obliged to remind you that the ramp at 45 nm AMD took place in 2008-2009, in the teeth of the recent recession. At the time, AMD has noticed that his flight had been slower than originally intended due to weak demand and high inventories of older parts Phenom. Throw in the fact that GlobalFoundries is now the construction of pieces for a variety of clients, rather than simply AMD, and would very much hope that the company was able to push the product out the door more quickly.

According to the GF CEO, Ajit Manocha, relatively recent changes in the company's production 32/28nm have produced significant improvements. AMD CEO Rory Read, weighed in with the following: "AMD and GLOBALFOUNDRIES worked closely from the 2011 … In just one quarter, we were able to see more than a doubling of the yields on 32nm, allowing us to pass our requirements for product shipping 32nm 2011 exit. Based on this successful flight of 32nm HKMG, we are committed to progress on GLOBALFOUNDRIES 28nm with. " (italics added).

That last sentence is always very careful. Readers who jump on what they see as misleading titles would appear to have a bone to pick with me. Rather than playing coy, I want to address it directly. Read statement about "progress" sounds good, but actually does not refer to a specific product. That is not an accident. AMD was remarkably close to where constructs-mouthed his next 28nm APUS and CPU, but Read comment left me wondering whether the company had left a trail of breadcrumbs.

Follow wafers

If you want to know what is planning a company, its documentation SEC are an excellent starting point. The rules that govern the corporate disclosures often require more specific information than what makes him in press releases, including forward-looking statements which are not subject to modification stealth when internal roadmaps are not met. In this case, various statements of AMD reveal that not enough use out of GlobalFoundries goodness of his heart. 10-K annual report, submitted at the end of February, said: "for the purposes of WSA [Wafer supply agreement] the company is required to purchase all its requirements of microprocessor units and APU product of GF with limited exceptions." (italics added).

AMD-FAD2

This limited exception was Brazos. The amended agreement by a few weeks back is described as granting AMD "some rights to contract with another supplier of wafer Foundry products are specified for a given period."

Looking back over the SEC filings, its clear just how badly GF has failed to meet its original agreements. First changed the WSA last year and switched to paying only good die, AMD had to pay about exprected GF 2.5 $ 1. When it filed that amendment in April 2011, it said it would pay between $ 1.1-GlobalFoundries $ 1.5 billion. The actual amount paid to GF in 2011? $941 m. Given that AMD was paying only for the good parts, the difference between expected and actual payments is a rough approximation of just how bad the situation at GlobalFoundries 32nm performance really was.

Follow the breadcrumbs back and the story grows more interesting. When AMD spun GF in 2009, there was a great deal of speculation that the company would move to GF when it transition to 32 nm GPU. As it happens, this round was sent in original condition that WSA GF has encountered some production goals. AMD originally was prohibited from seeking any second source for future CPU/APUs, once certain targets were hit and was required to transition MPU of all products purchased on GlobalFoundries within two years.

Why not believe statements Read "about progress with GlobalFoundries 28nm?" Because every move AMD has done since GF has been spun for distances from its former foundry, pouring the share of the company and securing the right to manufacture of products to TSMC. We look forward to the full text of the new agreement until AMD releases its next 10-Q at the end of the quarter, but you don't pay 700 million dollars to regain flexibility of production at the beginning of the month just to exchange your story about three weeks later.