Advanced Micro Devices (AMD), Intel Corp's largest competitor in computer processors, amended a supply agreement with Globalfoundries Inc to pay only for chips that work.
The companies changed the agreement covering chips made on the latest technology for this year, Sunnyvale, California-based AMD said in a statement. AMD will also record a $492 million (Dh1.8 billion), non-cash gain in the first quarter because of dilution of its holding in Globalfoundries.
The revision is intended to give Globalfoundries an incentive to improve production of 32-nanometer chips this year. Under their previous deal, AMD paid for all chips produced at cost of production plus a markup for Globalfoundries.
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