AMD shareholders approve chip manufacturing spinoff

By on
After an initial attempt failed last week, AMD shareholders have finally approved the company’s plan to spin off its chip manufacturing operations to form The Foundry Company in a joint venture with Abu Dhabi's Advanced Technology Investment Company (ATIC). The transaction is now expected to close by March 2.

Under the deal, AMD will receive $700 million and a 34.2 percent ownership stake in the manufacturing business, down from its original take of 44.4 percent due to its falling stock price. The remaining 65.8 percent will go to ATIC, but both companies will retain equal voting rights. The move is aimed at enabling the struggling chip maker to become more competitive against Intel and is a follow up to their asset smart strategy announced back in October.

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.