GlobalFoundries has long been AMD’s manufacturing partner for its processors and GPUs but the latter is now going with another contract manufacturer and there’s a good reason for that. AMD has confirmed that its new CPUs and GPUs based on the 7nm process technology will be made by the Taiwan Semiconductor Manufacturing Co.

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It’s not like AMD and GlobalFoundries had a falling out due to which the company has changed its contract manufacturer. GlobalFoundries has actually been working on the 7nm process technology for quite some time now and was expected to sample the first 7nm chips for its clients in Q4 this year.

However, the company has now announced that it’s ceasing all development work on its 7nm process technology and will focus on specialized processes instead. The decision has been taken due to business and financial concerns.

AMD has already been working on 7nm-based products with TSMC. These include its first 7nm GPU that’s due to launch later this year in addition to the first 7nm server CPU which will be launched in 2019. The roadmap also includes AMD’s Zen 2 CPU core and its Navi GPU architecture. AMD will continue to work with GlobalFoundries on products that are based on the latter’s 14 and 12nm process technologies.

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