AMD has entered a new agreement with chip supplier GlobalFoundries that cuts the quarterly order from $500m to $115m. AMD will owe GlobalFoundries $320m in termination fees, which is scheduled to be paid in parts until the end of 2013. The company is also in the process of standardizing 28-nanometer technology from GlobalFoundries, which will let it cut research and development costs.
For the year 2013, AMD estimates that it will be making purchases worth $1.15b from GlobalFoundries. Meanwhile, AMD is also preparing for 2014 launch of ARM based Opteron chips for server-grade machines.