AMD Amends Wafer Supply Agreement With GLOBALFOUNDRIES

SUNNYVALE, CA 04/01/14 AMD (NYSE: AMD) today announ짯ced that it amen짯ded its Wafer Sup짯p짯ly Agree짯ment (WSA) with GLOBALFOUNDRIES Inc. for 2014. Under the terms of the amend짯ment, AMD and GLOBALFOUNDRIES agreed on purcha짯se com짯mit짯ments for 2014 and estab짯lished fixed pri짯cing and other terms of the WSA which app짯ly to pro짯ducts AMD will purcha짯se from GLOBALFOUNDRIES. Under this amend짯ment AMD expects to pay GLOBALFOUNDRIES appro짯xi짯m짯ate짯ly $1.2 bil짯li짯on in 2014. The짯se purcha짯ses con짯tem짯p짯la짯te AMD셲 cur짯rent PC mar짯ket expec짯ta짯ti짯ons and the manu짯fac짯tu짯ring of cer짯tain Gra짯phics Pro짯ces짯sor Units (GPUs) and semi-cus짯tom game con짯so짯le pro짯ducts at GLOBALFOUNDRIES in 2014. The 2014 amend짯ment does not impact AMD셲 2014 finan짯cial goals inclu짯ding gross margin.

The suc짯cessful clo짯se of our amen짯ded wafer sup짯p짯ly agree짯ment with GLOBALFOUNDRIES demons짯tra짯tes the con짯tin짯ued com짯mit짯ment from our two com짯pa짯nies to streng짯then our busi짯ness rela짯ti짯onship as long-term stra짯te짯gic part짯ners, and GLOBALFOUNDRIES abili짯ty to exe짯cu짯te in ali짯gnment with our pro짯duct road짯map, said Rory Read, pre짯si짯dent and chief exe짯cu짯ti짯ve offi짯cer, AMD. 쏷his latest step in AMD셲 con짯tin짯ued trans짯for짯ma짯ti짯on plays a cri짯ti짯cal role in our goals for 2014.

About AMD

AMD (NYSE: AMD) designs and inte짯gra짯tes tech짯no짯lo짯gy that powers mil짯li짯ons of intel짯li짯gent devices, inclu짯ding per짯so짯nal com짯pu짯ters, tablets, game con짯so짯les and cloud ser짯vers that defi짯ne the new era of sur짯round com짯pu짯ting. AMD solu짯ti짯ons enable peo짯p짯le ever짯y짯whe짯re to rea짯li짯ze the full poten짯ti짯al of their favo짯ri짯te devices and appli짯ca짯ti짯ons to push the boun짯da짯ries of what is pos짯si짯ble. For more infor짯ma짯ti짯on, visit www.amd.com.

Cau짯tio짯na짯ry Statement
This release con짯ta짯ins for짯ward-loo짯king state짯ments con짯cer짯ning AMD, its ope짯ra짯ting model, esti짯ma짯ted pay짯ments to GLOBALFOUNDRIES for wafer purcha짯ses under the Wafer Sup짯p짯ly Agree짯ment in 2014, its mar짯ket expec짯ta짯ti짯ons for its pro짯ducts and manu짯fac짯tu짯ring plans and the impact of the Wafer Sup짯p짯ly Agree짯ment amend짯ment on its 2014 finan짯cial goals inclu짯ding gross mar짯gin, which are made pur짯su짯ant to the safe har짯bor pro짯vi짯si짯ons of the Pri짯va짯te Secu짯ri짯ties Liti짯ga짯ti짯on Reform Act of 1995. For짯ward-loo짯king state짯ments are com짯mon짯ly iden짯ti짯fied by words such as 쐗ould, 쐌ay, 쐃xpects, 쐀elie짯ves, 쐏lans, 쐇ntends, 쐏ro짯jects and other terms with simi짯lar mea짯ning. Inves짯tors are cau짯tio짯ned that the for짯ward-loo짯king state짯ments in this release are based on cur짯rent beliefs, assump짯ti짯ons and expec짯ta짯ti짯ons, speak only as of the date of this release and invol짯ve risks and uncer짯tain짯ties that could cau짯se actu짯al results to dif짯fer mate짯ri짯al짯ly from cur짯rent expec짯ta짯ti짯ons. Mate짯ri짯al fac짯tors and assump짯ti짯ons that were appli짯ed in making the짯se for짯ward loo짯king state짯ments include, wit짯hout limi짯ta짯ti짯on, AMD셲 cur짯rent expec짯ta짯ti짯ons regar짯ding GLOBALFOUNDRIES manu짯fac짯tu짯ring yields and wafer volu짯mes and demand for its pro짯ducts. Risks include the pos짯si짯bi짯li짯ty that Intel Corporation셲 pri짯cing, mar짯ke짯ting and reba짯ting pro짯grams, pro짯duct bund짯ling, stan짯dard set짯ting, new pro짯duct intro짯duc짯tions or other acti짯vi짯ties may nega짯tively impact AMD셲 plans; AMD may be unable to deve짯lop, launch and ramp new pro짯ducts and tech짯no짯lo짯gies in the volu짯mes that are requi짯red by the mar짯ket at matu짯re yields on a time짯ly basis; that AMD셲 third par짯ty foundry sup짯pli짯ers will be unable to tran짯si짯ti짯on its pro짯ducts to advan짯ced manu짯fac짯tu짯ring pro짯cess tech짯no짯lo짯gies in a time짯ly and effec짯ti짯ve way or to manu짯fac짯tu짯re AMD셲 pro짯ducts on a time짯ly basis in suf짯fi짯ci짯ent quan짯ti짯ties and using com짯pe짯ti짯ti짯ve tech짯no짯lo짯gies; AMD will be unable to obtain suf짯fi짯ci짯ent manu짯fac짯tu짯ring capa짯ci짯ty or com짯pon짯ents to meet demand for its pro짯ducts or will not ful짯ly uti짯li짯ze its com짯mit짯ment with respect to GLOBALFOUNDRIES micro짯pro짯ces짯sor manu짯fac짯tu짯ring faci짯li짯ties that cus짯to짯mers stop buy짯ing AMD셲 pro짯ducts or mate짯ri짯al짯ly redu짯ce their ope짯ra짯ti짯ons or demand for AMD셲 pro짯ducts; that AMD may be unable to main짯tain the level of invest짯ment in rese짯arch and deve짯lo짯p짯ment that is requi짯red to remain com짯pe짯ti짯ti짯ve; that the짯re may be unex짯pec짯ted varia짯ti짯ons in the mar짯ket growth and demand for its pro짯ducts and tech짯no짯lo짯gies in light of the pro짯duct mix that AMD may have available at any par짯ti짯cu짯lar time or a decli짯ne in demand; that AMD will requi짯re addi짯tio짯nal fun짯ding and may be unable to rai짯se suf짯fi짯ci짯ent capi짯tal on favorable terms, or at all; that glo짯bal busi짯ness and eco짯no짯mic con짯di짯ti짯ons will not impro짯ve or will wor짯sen; that demand for com짯pu짯ters will be lower than curr짯ent짯ly expec짯ted; and the effect of poli짯ti짯cal or eco짯no짯mic insta짯bi짯li짯ty, dome짯sti짯cal짯ly or inter짯na짯tio짯nal짯ly, on AMD셲 sales or sup짯p짯ly chain. Inves짯tors are urged to review in detail the risks and uncer짯tain짯ties in AMD셲 Secu짯ri짯ties and Exch짯an짯ge Com짯mis짯si짯on filings, inclu짯ding but not limi짯t짯ed to the annu짯al report on Form 10멚 for the year ended Dec. 28, 2013.

AMD, the AMD Arrow logo and Rade짯on are trade짯marks of Advan짯ced Micro Devices, Inc. Other names are for infor짯ma짯tio짯nal pur짯po짯ses only and may be trade짯marks of their respec짯ti짯ve owners.