Taiwan Semiconductor Manufacturing Company (TSM) has inked a foundry contract with AMD (AMD).

The contract states that from the second quarter of 2009, TSMC will be the original equipment manufacturer of AMD's processors, which will adopt the 40 nanometers manufacturing technology. A spokesperson from TSMC has refused to comment on the news and only told local media that gaining the foundry contract of AMD is one of the goals of the company.

In recent months, there is news about the restructuring of AMD in which the company will be divided into two independent companies — one is responsible for the design of chips and one for manufacturing.

At the beginning of September 2008, Dirk Meyer, the new CEO of AMD, confirmed that the company will partition its chip business before the end of 2008. He also said that the processor business of AMD will shift to foundries, which aims to free the company from the continuous investments in the manufacturing plants over the long run.