AMD Maintains Margin Guidance After Modified Globalfoundries Deal |
| Wall Street Journal - Apr 4, 2011 |
Advanced Micro Devices Inc. (AMD) maintained its full-year and long-term margin expectations after announcing changes to a supply agreement with manufacturing partner Globalfoundries Inc.
Globalfoundries is an AMD spinoff that has experienced delays in meeting shipment targets for a new class of semiconductors. But AMD said technology which uses 32-nanometer yields are now in-line with expectations and the company has started shipping Llano chips--used in the new Fusion processor generation--for revenue.
"You will see Llano-based systems in the marketplace this quarter," AMD said.
The semiconductor maker also failed to disclose updates surrounding its search for a new chief executive. AMD stunned investors in early January when it announced its CEO, Dirk Meyer, was stepping down immediately.
AMD said its supply agreement with Globalfoundries would be modified for 2011. AMD had been purchasing what are known as finished wafers from Globalfoundries under a "cost plus" basis, which reflects the company's production costs as well as an additional percentage previously negotiated.
Read Full Article from Wall Street Journal
- Posted: 2011-04-04 09:46:30
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