We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
78,785 News Articles

AMD closes chip plant spin-off deal

Abu Dhabi govt backs The Foundry Company

AMD has closed a deal with two Abu Dhabi investment firms that spins off its manufacturing operations into a separate company.

AMD will receive $700m from investment firm Advanced Technology Investment Company (ATIC), which is owned by the Abu Dhabi government. That will provide AMD a 34.2 percent share of the manufacturing spin-off tentatively called The Foundry Company, said Michael Silverman, an AMD spokesman. The rest of the stake is owned by ATIC.

The Foundry Company is expected to formally launch later this week and will receive a new name, AMD said. Last month, AMD shareholders approved spinning off the manufacturing operations during a vote.

AMD last year said it would spin off its manufacturing operations to focus on chip design and cut manufacturing costs. AMD has reported consecutive quarterly losses and was looking to spin off its manufacturing arm in an effort to return to profitability.

AMD on Monday also appointed Bruce Claflin as a chairman of the company's board of directors, replacing former chairman Hector Ruiz, who retired. Claflin has been a member of AMD's board of directors since 2003, AMD said. Ruiz will now be chairman of The Foundry Company's board.


IDG UK Sites

Android One vs Android Silver vs Google Nexus: What is the difference?

IDG UK Sites

2014 Mac mini release date, specs, rumours: When's the new Mac mini coming out?

IDG UK Sites

Long live the internet fridge: the Internet of Things is coming

IDG UK Sites

How Prometheus' colourist Juan Ignacio Cabrera gave a tense, edgy feel to Chosen