AMD Amends Wafer Supply Agreement With GLOBALFOUNDRIES

SUNNYVALE, CA — 04/01/14 – AMD (NYSE: AMD) today announ­ced that it amen­ded its Wafer Sup­ply Agree­ment (WSA) with GLOBALFOUNDRIES Inc. for 2014. Under the terms of the amend­ment, AMD and GLOBALFOUNDRIES agreed on purcha­se com­mit­ments for 2014 and estab­lis­hed fixed pri­cing and other terms of the WSA which app­ly to pro­ducts AMD will purcha­se from GLOBALFOUNDRIES. Under this amend­ment AMD expects to pay GLOBALFOUNDRIES appro­xi­mate­ly $1.2 bil­li­on in 2014. The­se purcha­ses con­tem­pla­te AMD’s cur­rent PC mar­ket expec­ta­ti­ons and the manu­fac­tu­ring of cer­tain Gra­phics Pro­ces­sor Units (GPUs) and semi-cus­tom game con­so­le pro­ducts at GLOBALFOUNDRIES in 2014. The 2014 amend­ment does not impact AMD’s 2014 finan­cial goals inclu­ding gross margin.

The suc­cess­ful clo­se of our amen­ded wafer sup­ply agree­ment with GLOBALFOUNDRIES demons­tra­tes the con­ti­nued com­mit­ment from our two com­pa­nies to streng­t­hen our busi­ness rela­ti­ons­hip as long-term stra­te­gic part­ners, and GLOBALFOUNDRIES’ abi­li­ty to exe­cu­te in align­ment with our pro­duct road­map,” said Rory Read, pre­si­dent and chief exe­cu­ti­ve offi­cer, AMD. “This latest step in AMD’s con­ti­nued trans­for­ma­ti­on plays a cri­ti­cal role in our goals for 2014.”

About AMD

AMD (NYSE: AMD) designs and inte­gra­tes tech­no­lo­gy that powers mil­li­ons of intel­li­gent devices, inclu­ding per­so­nal com­pu­ters, tablets, game con­so­les and cloud ser­vers that defi­ne the new era of sur­round com­pu­ting. AMD solu­ti­ons enab­le peop­le ever­y­whe­re to rea­li­ze the full poten­ti­al of their favo­ri­te devices and app­li­ca­ti­ons to push the bounda­ries of what is pos­si­ble. For more infor­ma­ti­on, visit www.amd.com.

Cau­tio­na­ry Statement
This release con­tains for­ward-loo­king state­ments con­cer­ning AMD, its ope­ra­ting model, esti­ma­ted pay­ments to GLOBALFOUNDRIES for wafer purcha­ses under the Wafer Sup­ply Agree­ment in 2014, its mar­ket expec­ta­ti­ons for its pro­ducts and manu­fac­tu­ring plans and the impact of the Wafer Sup­ply Agree­ment amend­ment on its 2014 finan­cial goals inclu­ding gross mar­gin, which are made pur­suant to the safe har­bor pro­vi­si­ons of the Pri­va­te Secu­ri­ties Liti­ga­ti­on Reform Act of 1995. For­ward-loo­king state­ments are com­mon­ly iden­ti­fied by words such as “would,” “may,” “expects,” “belie­ves,” “plans,” “intends,” “pro­jects” and other terms with simi­lar mea­ning. Inves­tors are cau­tio­ned that the for­ward-loo­king state­ments in this release are based on cur­rent beliefs, assump­ti­ons and expec­ta­ti­ons, speak only as of the date of this release and invol­ve risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from cur­rent expec­ta­ti­ons. Mate­ri­al fac­tors and assump­ti­ons that were app­lied in making the­se for­ward loo­king state­ments inclu­de, without limi­ta­ti­on, AMD’s cur­rent expec­ta­ti­ons regar­ding GLOBALFOUNDRIES manu­fac­tu­ring yiel­ds and wafer volu­mes and demand for its pro­ducts. Risks inclu­de the pos­si­bi­li­ty that Intel Corporation’s pri­cing, mar­ke­ting and reba­ting pro­grams, pro­duct bund­ling, stan­dard set­ting, new pro­duct intro­duc­tions or other acti­vi­ties may nega­tively impact AMD’s plans; AMD may be unab­le to deve­lop, launch and ramp new pro­ducts and tech­no­lo­gies in the volu­mes that are requi­red by the mar­ket at matu­re yiel­ds on a time­ly basis; that AMD’s third par­ty found­ry sup­pliers will be unab­le to tran­si­ti­on its pro­ducts to advan­ced manu­fac­tu­ring pro­cess tech­no­lo­gies in a time­ly and effec­ti­ve way or to manu­fac­tu­re AMD’s pro­ducts on a time­ly basis in suf­fi­ci­ent quan­ti­ties and using com­pe­ti­ti­ve tech­no­lo­gies; AMD will be unab­le to obtain suf­fi­ci­ent manu­fac­tu­ring capa­ci­ty or com­pon­ents to meet demand for its pro­ducts or will not ful­ly uti­li­ze its com­mit­ment with respect to GLOBALFOUNDRIES micro­pro­ces­sor manu­fac­tu­ring faci­li­ties that cus­to­mers stop buy­ing AMD’s pro­ducts or mate­ri­al­ly redu­ce their ope­ra­ti­ons or demand for AMD’s pro­ducts; that AMD may be unab­le to main­tain the level of invest­ment in rese­arch and deve­lo­p­ment that is requi­red to remain com­pe­ti­ti­ve; that the­re may be unex­pec­ted varia­ti­ons in the mar­ket growth and demand for its pro­ducts and tech­no­lo­gies in light of the pro­duct mix that AMD may have avail­ab­le at any par­ti­cu­lar time or a decli­ne in demand; that AMD will requi­re addi­tio­nal fun­ding and may be unab­le to rai­se suf­fi­ci­ent capi­tal on favor­able terms, or at all; that glo­bal busi­ness and eco­no­mic con­di­ti­ons will not impro­ve or will worsen; that demand for com­pu­ters will be lower than cur­r­ent­ly expec­ted; and the effect of poli­ti­cal or eco­no­mic insta­bi­li­ty, domesti­cal­ly or inter­na­tio­nal­ly, on AMD’s sales or sup­ply chain. Inves­tors are urged to review in detail the risks and uncer­tain­ties in AMD’s Secu­ri­ties and Exchan­ge Com­mis­si­on filings, inclu­ding but not limi­ted to the annu­al report on Form 10‑K for the year ended Dec. 28, 2013.

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