Benzinga | Dec 27, 2021 07:05AM EST

Everything You Need To Know About AMD-GlobalFoundries Deal

Chip firm Advanced Micro Devices Inc (NASDAQ:AMD) agreed to acquire about $2.1 billion of silicon wafers from GlobalFoundries Inc (NASDAQ: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 (NYSE: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.