IBM, AMD Extend Manufacturing Agreement to 2008

By Suzanne Deffree -- Electronic News, 9/22/2004

IBM and AMD have extended their manufacturing agreement to December 2008 to cover 32nm production, Electronic News has confirmed.

The original December 2002 contract, calling for joint 65nm and 45nm logic process technologies, was slated to expire in 2005. For the additional three years and possible 32nm technology advancements, AMD will pay IBM $250 million to $280 million, dependant on upon the number of partners engaged in related development projects at IBM's East Fishkill facility during the joint development period.

The deal still gives AMD rights to bump 300mm wafers in its Dresden fabrication facility; manufacture AMD branded products in the 300mm fab using the joint technology; sell AMD-branded products made in its Dresden facility using the bump technology; and have another manufacturer make an apparatus for bumping 300mm wafers. With the extension agreement, AMD also obtained a license to bump a "substantial number" of 200mm wafers for third parties at no charge, and to bump any additional 200mm wafers for a royalty payment based on its bumping fees charged to the third parties, IBM said.

The extension agreement was signed on Sept. 15 and is conditioned upon the approval of IBM's board of directors.