AMD 1994 Annual Report Download - page 257

EXHIBIT D (3.3)
ACTUAL ORDERS
A. Logistics:
1. Shipment - Date of transfer to AMD designated freight forwarder "DHL".
2. Weekly shipment cut off time is Sunday midnight.
3. Linear weekly shipments, if possible.
4. AMD will guarantee inventory (WIP) required to achieve [CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION] commitment. No delivery behind schedule more
than 1 week will be accepted.
5. AMD will provide die orders using TSMC six (6) month Net Die per Wafer
(NDW) forecast.
6. CVP will be measured on weekly basis.
7. TSMC to provide AMD with production capacity limitation by wafers and
die limitation by product. This information to be provided monthly
with the six (6) month demand forecast.
8. The TSMC WIP report is to cover rolling five (5) month periods.
B. Orders:
1. 1st and 2nd months order firm with detailed mix.
2. 3rd month volume will be firm and mix change rate to be less than
[CONFIDENTIAL INFORMATION OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION]% per week, AMD will define the
mix by Wednesday 12:01 p.m. Pacific Standard Time (PST) of each week.
3. Confirmation is automatic from TSMC San Jose to AMD.
4. The order volume variance allowed is: 90 days--10%, 120 days--20%.
C. Testing:
1. Mix change to be made only at wafer starts (10 weeks in advance).
2. AMD will guarantee testing support. If AMD fails and TSMC misses
committed deliveries, then the delivery will be rescheduled based on
available test time.
3. Line stoppage for mask change will be handled the same as (2).
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995