AMD's ex-girlfriend wins Qualcomm's big deal: $50 billion price tag
GlobalFoundries (GF), which was spun off from AMD's wafer manufacturing business in 2009, has been called "AMD's ex-girlfriend" by netizens and is also one of AMD's important foundries. However, it announced its withdrawal from 7nm process production in 2018 and has been better off focusing on mature process in recent years.
Recently, the United States has passed a total subsidy bill of more than 280 billion US dollars, including 52 billion US dollars for chip factories, which also stimulates the cooperation of the US semiconductor industry. GF recently announced that it signed a new contract with Qualcomm, with a total value of more than 7.4 billion US dollars, about 50 billion yuan.
According to the contract, Qualcomm will purchase chips worth $4.2 billion from GF's fab in New York, the United States. The two sides have already signed a chip purchase agreement worth $3.2 billion, mainly covering 5G radio frequency, Wi-Fi, Internet of things and other chips.
The two deals, which run through 2028, are long-term deals for both sides that ensure stable chip purchases over the next few years, rather than the shortages, price increases and volatility of the past two years when production capacity was tight.
For the company's facility in upstate New York, having a long-term customer like Qualcomm, along with financial support from the federal and state governments, will help expand the company's U.S. manufacturing operations, said CEO Thomas Caulfield.
TSMC is the fourth largest foundry in the world, after TSMC, Samsung and UMC. It is close to UMC in share and the largest in the United States. With a big customer like Qualcomm, it is expected to overtake UMC in the future.