Global Foundries has struck what it coyly describes as "a strategic customer engagement" with spun-off AMD chip business Global Foundries.
This is PR speak for ST Microelectronics has become Global Foundries first customer.
The deal means that Global Foundries will create products using a 40 nanometer low power (LP) bulk silicon technology for ST Microelectronics. Tape out and production of the first ST products will start in 2010.
The chips will be used for next generation wireless applications, handheld devices and gizmos.
The deal, as far as we know, is the first that Global Foundries has struck with any external customer apart from AMD itself. Earlier this week, Global Foundries started digging up the ground in New York State to build an additional fab.
Global Foundries will find itself competing with companies like IBM Microelectronics, TSMC, UMC and Chartered for external foundry business.