AMD is in an interesting position at the moment, thanks in no small part to Intel’s missteps and the technical challenges associated with its next-generation 10nm manufacturing process. Because volume production of Intel’s 10nm process is so late, AMD – which contracts third parties to actually manufacture its chips – may soon be in a position where its products will be produced on a more advanced, leading-edge manufacturing process than Intel’s.
As of yesterday, TSMC (Taiwan Semiconductor Manufacturing Company), GlobalFoundaries, and Samsung Foundry were the only contract semiconductor manufacturers offering leading-edge process technologies for complex logic. But earlier today GlobalFoundaries announced a major strategic shift and essentially abandoned development of its planned 7nm node to focus on the continued evolution of its 14/12nm processes for clients focused on high-growth markets.
Shortly after the GloFo news hit, I received information from AMD that it would be using TSMC exclusively for production of its next-generation 7nm CPUs and GPUs. “Our upcoming 7nm product portfolio represents the next major milestone for AMD computing and graphics leadership, including our second generation “Zen 2” CPU core and our new “Navi” GPU architecture”, said an AMD representative. “We have already taped out multiple 7nm products at TSMC, including our first 7nm GPU that is planned to launch later this year, and our first 7nm server CPU that we have sampled to strategic customers and plan to launch in 2019.”
Some of AMD’s current products are produced at GlobalFoundaries and an agreement was in place for production of next-gen products as well, though AMD has already made it clear back in June that TSMC was its go-to for 7nm. At this point, AMD plans to leverage the additional investments GlobalFoundaries plans to make in its 14/12nm technologies to support the continued ramp AMD’s current generation AMD Ryzen, Radeon, and EPYC processors, but longer-term some renegotiation will be taking place.
AMD does not believe GlobalFoundaries’ new strategy will impact the introduction or launch timing of AMD’s future 7nm products, however, but it is in discussions to modify the existing Wafer Supply Agreement (WSA) that is in place to better align with GlobalFoundaries’ new strategy and AMD believes an updated WSA in both company’s best financial interests will likely be put in place.
