AMD 1994 Annual Report Download - page 244

3.2.1.2 Except for the production increases agreed to and
provided for in Exhibit C (1.9) Reserved Production Capacity, any requested
increase in production volumes by AMD shall be no more than [CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION] Wafers/week in any ninety (90) day period upon ninety (90) days
notice from AMD up to the Reserved Production Capacity unless otherwise agreed
to by TSMC.
3.2.2 AMD will purchase a minimum number of Wafers/week equal to
[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION] percent ([CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] %) of TSMC's Reserved
Production Capacity specified in the above Section 3.2.1 and in Exhibit C (1.9),
provided: (i) the yield of Die per Wafer is at least [CONFIDENTIAL INFORMATION
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION]
percent ([CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION] % ); and (ii) the Product can be sold with
[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION] . If requested by TSMC, AMD will provide reasonable and
sufficient evidence of its [CONFIDENTIAL INFORMATION OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] for the Product to the
extent it is permitted to do so if the [CONFIDENTIAL INFORMATION OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION] given in 3.2.2
(ii).
3.2.3 If the Die cannot be sold to AMD to produce a [CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION] greater than provided in Section 3.2.2 for a particular Product and
TSMC cannot thenceforward [CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION] of such Die to AMD to meet AMD's
[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION], the number of Wafers allocated to such Product shall
thenceforward be subtracted from the minimum. If particular Wafers are
rejected, the minimum is reduced by the number of rejected Wafers. If TSMC does
not produce the number of Wafers allocated to a particular Product type, the
minimum is reduced by that amount.
3.3 Actual orders shall be provided to TSMC by AMD as outlined in Exhibit D
(3.3).
3.4 TSMC will purchase testing equipment (Testers) to meet AMD forecast
demands. If the Testers are not used for three (3) months and there is not
forecast use for the next three (3) months, at TSMC's written request, AMD shall
purchase the Testers from TSMC for their depreciated value.
3.5 If AMD determines that modifications to the Products or the Qualification
Requirements are required, including modifications to mask tooling, process or
testing, TSMC agrees to make such modifications within a reasonable period of
time after notification in writing by AMD. The
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995