GlobalFoundries will supply Advanced Micro Devices with its leading-edge computer chips through at least the end of 2020, under an amended agreement announced by AMD Wednesday.

The extension assures a long-term market for GlobalFoundries.

"This is a five-year extension," said Thomas Caulfield, general manager of GlobalFoundries' Fab 8 semiconductor plant, which has 3,000 employees. "We've never done one of that length in the past."

The extension comes as AMD rolls out its newest microprocessors and graphics chips, which have been getting positive reviews.

Last month, at a demonstration in San Francisco, AMD's new Zen processor, produced at GlobalFoundries, outperformed rival Intel Corp.'s most powerful chip. News of the event boosted AMD shares by 10 percent.

Fab 8 is producing processors at the 14-nanometer level, but expects a move to processors with transistors of 7 nanometers.

"This deal cements our next-generation technology of seven nanometers," Caulfield said of the amendment.

By: DocMemory
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