It appears they have solved the 32-nm issues. They say that they have dramatically increased the shipments of AMD's 32-nm APUs.
Will they continue to work together? There is much discussion here about their continuing strategic partnership, etc. But AMD is basically shelling out more than half a million dollars, including relinquishing its stake in GF, in order to gain the right to use another foundry at 28-nm. So what does that say?