AMD spin-off GLOBALFOUNDRIES has announced today that it has signed ST Microelectronics in ongoing efforts to diversify its manufacturing portfolio across multiple firms.
GLOBALFOUNDRIES will begin contracted supply and manufacturing beginning in 2010. Chips produced under the agreement will use a 40nm process node ideal for handhelds and consumer devices, the Foundry says.
Questions remain, however, as neither firm would comment on the capacity GLOFO is providing to STMicroelectronics which already maintains its own stable of production facilities.
The new deal will certainly help dispel ongoing criticism that GLOBALFOUNDRIES is little more than AMD’s manufacturing arm. A deal with STMicroelectronics will also improve the firm’s chances at attracting production rights from the industry’s growing glut of fabless firms.
“When we launched GLOBALFOUNDRIES, our long-term vision was to bring a new business model to the foundry market and to become the partner of choice for the largest and most innovative semiconductor design and manufacturing companies,” said GLOBALFOUNDRIES CEO Doug Grose.
GLOBALFOUNDRIES was spun from AMD in March with the aid of Abu Dhabi investment firm ATIC. The move was an expected development in the realization of Advanced Micro Device’s “asset light” strategy designed to shift the firm towards semiconductor design.
Though GLOBALFOUNDRIES is an independent company, AMD retains minority share and currently represents the sum of the company’s manufacturing obligations. The x86 chip maker stands to benefit from the STMicro deal as increased production at GLOFO fabs will boost foundry efficiency to the effect of lower costs for all involved parties.
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