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AMD Splits in Two
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Written by Daniel   
Tuesday, 07 October 2008 12:24
One company will design chips, the other will manufacture them

It’s no secret that AMD has been in trouble lately.  Despite gaining a commanding position in the graphics industry, the chipmaker giant has been beaten by Intel in the microprocessor market.  With AMD's first 45 nm product, Shanghai, forced to try to enter the market at the same time as Intel's second generation 45 nm Nehalem, and with consist quarterly losses something had to be done.



Today AMD announced a shocking decision that will rock the computer industry -- in order to try to stay competitive, it is splitting in two.  From the ashes of AMD will rise two companies. One will design chips and keep the brand name.  The other, officially named the Foundry Company, will manufacture chips.  The two companies will work closely together, but be independent.

The move also came with good news -- two Abu Dhabi companies have elected to inject at least $5.7B USD into the pair of companies.  Most of this money will go to the Foundry Company, which will use it to build a new factory in Albany, N.Y., and to upgrade its Dresden, Germany factory.

AMD retains a 44.4 percent stake in the new company.  The majority ownership belongs to Advanced Technology Investment Company.  Advanced Technology, a company created by Abu Dhabi's wealthy government, has promised immediate investment of $2.1B USD into the pair.  It says it will follow this with an additional investment that could be anywhere from $3.6B to $6B USD.  Despite the majority stake, Advanced Technology consented to have an equal number of votes as AMD on the Foundry Company's board.

[DailyTech...]   [Comments...] 

 

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