Everything You Need To Know About AMD-GlobalFoundries Deal

Chip firm Advanced Micro Devices Inc AMD agreed to acquire about $2.1 billion of silicon wafers from GlobalFoundries Inc GFS from 2022 through 2025.

• Previously, AMD agreed to buy $1.6 billion worth of chips between 2022 and 2024. 
• AMD spun off its chip factory operations in 2009, leading to GlobalFoundries, and has supplied AMD since then, Reuters reports.
• Related Content: GlobalFoundries Commands $25B Valuation For US IPO
• However, GlobalFoundries in 2018 decided to quit pursuing leading-edge chipmaking technologies.
• Since then, AMD has turned to Taiwan Semiconductor Manufacturing Co Ltd TSM to supply the most critical sections of its computer processors called "chiplets." 
• Even though TSM has become its primary supplier, AMD still relies on some components from GlobalFoundries to tie its chips together.
• Price Action: AMD shares traded higher by 0.79% at $147.30 in the premarket session on the last check Monday.