AMD Goes Asset Light; Spins Off Manufacturing Into Seperate Unit
AMD is making some bold moves. The company has decided to break off its chip manufacturing business and roll it into a new joint venture with an Abu Dhabi-based firm Advanced Technology Investment Company (ATIC).
The venture known as The Foundry Company will be headquartered in the U.S. and will be an independent manufacturing firm that will produce chips not just for AMD but also other companies.
The move will create a new AMD, one that will focus solely on design and leave manufacturing to the joint venture.
“We can say without doubt that AMD has answered the question of how it will stay in the CPU race with leading edge process technology,” said Doug Freedman, an analyst with independent research firm American Technology Research in a research note. AMD’s stock was up nearly 18% in recent trading following the announcement.
AMD’s two fabrication facilities in Dresden, Germany will be rolled into the new venture, said the company.
Read more: wired.com