SAN FRANCISCO Dec 6 Advanced Micro Devices
will scale back on purchases from manufacturing partner
GlobalFoundries Inc in 2013, allowing the struggling
microprocessor firm to conserve cash and reflecting a slowdown
in the personal computer market.
A distant runner-up to Intel Corp in PC
microprocessors, AMD is trying to raise capital and arrest steep
declines in revenue as the PC market sputters. It divulged plans
last month to sell and lease back its campus in Austin, Texas,
to raise cash and fund its chipmaking business.
On Thursday, AMD said it had struck a deal with
GlobalFoundries, under which it lowered wafer purchase
commitments for the fourth quarter of 2012 to about $115
million, and to $1.15 billion in fiscal 2013.
Along with lowered payments for research and development,
the agreement with the foundry partner should allow AMD to
return to free cash flow generation by the second half of 2013,
the company said in a statement.