AMD had agreed to buy $1.6 billion worth of chips between 2022 and 2024, according to a filing with the US Securities and Exchange Commission in May. Wafers are the large discs of silicon on which computer chips are made.

GlobalFoundries was created when AMD spun off its chip factory operations in 2009 and has supplied AMD since then. However, GlobalFoundries in 2018 decided to quit pursuing leading edge chipmaking technologies.

Since then, AMD has TSMC to supply its “chiplets." Even though TSMC has become its primary supplier, AMD still relies on some GlobalFoundries components.