AMD - Splitting into two companies.

MRG

MRG

Newbie
Joined
Mar 24, 2007
Messages
1,174
Reaction score
0
Well-known CPU and motherboard manufacturer AMD announced that it will be splitting into two companies. According to a story on NYTimes, this is AMD's drastic effort to maintain its position against its main rival Intel. Apparently, one company will be "focused on designing microprocessors and the other on the costly business of manufacturing them." Company reps said two Abu Dhabi investment firms would pour in at least $6 billion into the two companies with the main purpose to finance AMD's new chip factory, which is to be built near Albany, N.Y. Other efforts are focused on upgrading one of the companys existing plants in Dresden, Germany.
Click to expand...

http://www.anandtech.com/cpuchipsets/showdoc.aspx?i=3425

-MRG
 
Not being an economist or business student I don't see what advantage this would have.

I'm also slightly skeptical. There have been too many cries of wolf over the past few weeks. If you'd said EA were buying them out I might have believed you, though.
 
Well, you can now be assured there will be an AMD in the next few years. They got money from the deal and sharing some of their debt. All a big relief and freeing them up a bit. AMD still does CPUs. AMD will just have "The Foundry Company" produce them. Just like ATI/Nvidia let some other company make their chips.

AMD gets $700 million. Keeps a 44.4% stake in the new foundry company and equal voting rights. AMD will get rid of $1.3 billion in debt.
ATIC is also supposed to invest billions into the foundry and gets one seat on the AMD board. And I think the new foundry company has a deal with AMD so the same foundries still make the CPUs.
 
Cool. Good to know its going to help them out so much.
 
Build me a better Phenom, AMD. Build me something to be proud of.
 
You must log in or register to reply here.
Back
Top