Chip firm Advanced Micro Devices Inc (NASDAQ: AMD) agreed to acquire about $2.1 billion of silicon wafers from GlobalFoundries Inc (NASDAQ: GFS) from 2022 through 2025.
Previously, AMD agreed to buy $1.6 billion worth of chips between 2022 and 2024.
AMD spun off its chip factory operations in 2009, leading to GlobalFoundries, and has supplied AMD since then, Reuters reports.
Related Content: GlobalFoundries Commands B Valuation For US IPO
However, GlobalFoundries in 2018 decided to quit pursuing leading-edge chipmaking technologies.
Since then, AMD has turned to Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) to supply the most critical sections of its computer processors called "chiplets."
Even though TSM has become its primary supplier, AMD still relies on some components from GlobalFoundries to tie its chips together.
Price Action: AMD shares traded higher by 0.79% at $147.30 in the premarket session on the last check Monday.
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