Advanced Micro Devices (AMD) recently announced that the company is paying GlobalFoundries $320 million to modify its wafer purchase agreement with the contract wafer manufacturer. The announcement comes as AMD continues to struggle as it competes against Intel in a very tough PC market. The amended contract allows AMD to reduce its wafer purchase commitments for Q4 2012 and modify the agreement for the years after that. No sense in making wafers of processors that aren't selling, so this appears to be a money saving move for AMD.

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Announcement details:

"Today's announcement demonstrates that the long-term strategic partnership between AMD and GLOBALFOUNDRIES continues to benefit both companies," said Rory Read, president and chief executive officer, AMD. "GLOBALFOUNDRIES’ performance in meeting our delivery requirements in 2012 was strong and they remain a strategic and important foundry partner moving forward. We are committed to develop and grow our business with GLOBALFOUNDRIES, increasing our engagement across our industry leading APU and graphics roadmaps. The newly amended agreement is another step we are taking to further strengthen our relationship with GLOBALFOUNDRIES as well as AMD's financial foundation."