Management Service Agreement

Exhibit 10.71

Management Service Agreement

between

- hereinafter referred to as “AMD Saxony” -

and

- hereinafter referred to as “AMD Fab X” -

and

- hereinafter referred to as “AMD Fab X Holding” -

and

- hereinafter referred to as “AMD Inc.” -

RECITALS

WHEREAS, M+W Zander Fünfte Verwaltungsgesellschaft mbH (“M+W”) and the Free State of Saxony will enter into a Cooperation Agreement pursuant to which a new factory (“Fab X”) for the production of wafers (“Wafer” means a 300 mm silicon wafer on which integrated circuits particularly for microprocessors are manufactured) is to be erected and operated in Dresden. In addition to the production of Wafers, own research and development to a considerable extent is to be conducted in the new factory in order to develop technology for the manufacture of semiconductors up to industrial production

stage. The factory will be operated by AMD Fab X. The current partners of AMD Fab X are AMD Fab X Holding, as limited partner, and AMD Fab X LLC, as general partner holding no share in the capital of the partnership; it is intended that the further partners of AMD Fab X will be M+W, Leipziger Messe GmbH, both additionally also as silent partners, as well as a German limited liability company (GmbH) to be appointed by Leipziger Messe GmbH, the latter as a further general partner holding no share in the capital of the partnership. AMD Inc. is the sole shareholder of AMD Fab X Holding and of AMD Fab X LLC.

WHEREAS, AMD Fab X Holding and AMD Fab X, as well as AMD Fab X Holding and AMD Inc., are each entering into cost reimbursement agreements which, as amended, supplemented or otherwise modified from time to time, in the former case are referred to as the “AMD Fab X Cost Plus Reimbursement Agreement”) and in the latter case as the “AMD Fab X Holding Cost Plus Reimbursement Agreement”. According to the AMD Fab X Cost Reimbursement Agreement, AMD Fab X agrees to manufacture Wafers in its factory and to sell such Wafers to AMD Fab X Holding and AMD Fab X Holding agrees to purchase such Wafers from AMD Fab X. According to the AMD Fab X Holding Cost Plus Reimbursement Agreement, AMD Fab X Holding agrees to sell to AMD Inc. and AMD Inc. agrees to purchase from AMD Fab X Holding 100% of all Wafers which AMD Fab X Holding purchases from AMD Fab X under the AMD Fab X Cost Plus Reimbursement Agreement.

WHEREAS, AMD Fab X and AMD Inc. have executed a Buy-In Agreement attached hereto as Appendix dated as of 31 October 2003 with respect to the start-up costs incurred prior to the effective date of this Agreement which shall be borne by AMD Fab X.

WHEREAS, AMD Fab X is now interested in obtaining certain technical and administrative services related to Fab X.

NOW THEREFORE, based on the aforesaid contractual situation, the parties hereto hereby agree as follows:

2

research and development there as well as for the erection and operation of the factory of AMD Fab X in accordance with the overall project plan and the operative business plan and its further development. AMD Saxony or, as the case may be, AMD Inc. shall use Services and support of their affiliated enterprises, insofar as legally possible. The Services in support of Fab X shall particularly, but not conclusively, be rendered in the following areas:

The parties can define the Services agreed upon in Section 1.1 in more detail from time to time.

3

4

concerned, cannot invoke bad performance or non-performance by AMD Fab X, and that AMD Inc., insofar as the AMD Fab X Holding Cost Reimbursement Agreement is concerned, cannot invoke bad performance or non-performance by AMD Fab X Holding; there shall be no other legal consequences under this warranty.

Insofar as the costs were incurred by AMD Saxony or, as the case may be, AMD Inc. for the compensation of third-party Services, such costs (insofar as they represent expenses in the sense of the preceding paragraph) shall be passed through to AMD Fab X without the mark up stated in the preceding paragraph. Likewise, payments made by AMD Saxony or, as the case may be, AMD Inc. to third parties for the purchase of assets, materials or other objects the purchase of which AMD Fab X requests and which are ultimately intended for use by Fab X shall be charged on to Fab X without markup.

Arbitrator. If and insofar as AMD Fab X considers to be inadequate the remuneration for the Services rendered directly by AMD Saxony or, as the case may be, AMD Inc. and if the Parties cannot agree on the amount of remuneration, the Parties will make efforts to promptly agree on an arbitrator and instruct same in the name of all parties to establish the adequacy of the remuneration with final

5

and binding effect on the Parties within the framework of the positions taken by the parties. The Parties shall be given reasonable opportunity to state their positions in writing as well as in the course of one or more hearings before the arbitrator. The arbitrator shall provide reasons for his decision. In his decision, the arbitrator shall also decide on the distribution of costs of the arbitration based on who wins and who loses the dispute (§§ 91 et seqq. German Code of Civil Procedure), although each Party shall bear the costs of its own advisors. The factual findings of the arbitrator shall be final and binding on the Parties. If the Parties have not agreed on an arbitrator within 10 bank working days, on the request of any one Party the President of the Dresden OLG (Higher Regional Court) shall, with binding effect for the Parties, nominate an expert or consultancy company as arbitrator. The arbitrator must not have, and not have had within the past five (5) years, any business relations with any Party or a company affiliated with it in the sense of § 15 AktG (German Stock Corporations Act).

6

Inc. hereby assigns to AMD Fab X Holding its entire right, title and interest in compensation for Services hereunder rendered after the Effective Date. In consideration of this assignment, AMD Fab X Holding hereby agrees that, promptly upon being credited for any amount by AMD Fab X under this Section 2.5, it shall credit AMD Inc. against amounts owed or to be owed by AMD Inc. to AMD Fab X Holding under the AMD Fab X Holding Cost Plus Reimbursement Agreement.

7

This Agreement shall become effective on the date hereof and shall terminate by ordinary notice of termination given by any of the Parties with three months’ notice, such effective date being the end of any calendar month, however, not before the Termination Date as defined in Section 5.1 of the AMD Fab X Cost Plus Reimbursement Agreement or the AMD Fab X Holding Cost Plus Reimbursement Agreement.

AMD Fab X and AMD Saxony shall have the right to assign their respective rights under this Agreement to banks.

8

The liability and warranty assumed by each of AMD Saxony and AMD Inc. vis-à-vis AMD Fab X are determined by the German law on contracts for work and contracts for the provision of services. In providing services hereunder, employees of AMD Saxony and AMD Inc. shall be required to exercise only the same degree of skill and diligence as they would exercise in performing the same or comparable services for AMD Saxony or AMD Inc., as the case may be. The cost reimbursement under the AMD Fab X Holding Cost Plus Reimbursement Agreement remains unaffected hereof.

Amendments of and supplements to this Agreement shall be made in written form to be valid. This applies also to a waiver of the written from requirement.

9

10

11