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AMD cuts back on GlobalFoundries purchases in 2013US-AMD-CASH:AMD cuts back on GlobalFoundries purchases in 2013
SAN FRANCISCO (Reuters) - 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.
(Reporting By Edwin Chan)
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