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AMD spins off its manufacturing business
AMD finally detailed its “asset smart” strategy today, which, as expected, involves spinning off its fabrication business into a separate company temporarily known as “The Foundry Company.” As part of the move, Advanced Technology Investment Company (ATIC) of Abu Dhabi will take a 55.6% stake in the new manufacturing entity and contribute a few billion dollars over the coming years, whereas AMD will take a 44.4% stake but get equal voting rights with ATIC.
After spinning off its foundry business, AMD executives said they’ll be able to focus entirely on the design of new microprocessors and graphics chips, rather than continue funding manufacturing operations at a loss in order to keep up with rival Intel. The transaction should close “at the beginning of 2009,” at which point The Foundry Company will reveal its permanent corporate name. Check out AMD’s New Global Foundry page to learn more.
After spinning off its foundry business, AMD executives said they’ll be able to focus entirely on the design of new microprocessors and graphics chips, rather than continue funding manufacturing operations at a loss in order to keep up with rival Intel. The transaction should close “at the beginning of 2009,” at which point The Foundry Company will reveal its permanent corporate name. Check out AMD’s New Global Foundry page to learn more.
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User Comments (1)
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ddg4005 on October 7, 2008 9:30 PM |
Not being an economist I don't see this as a good move for AMD. It sounds like they're conceding the CPU war to Intel without officially stating such. Selling their fabs will only buy them a another stay of execution; eventually someone's gonna snap them up. The only question is who? |
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