AMD to be split in two
Posted on 7 Oct 2008 at 08:29
AMD has announced plans to split into two companies - one focusing on processor design and another on manufacturing.
The embattled chipmaker is making the move in a bid to stem heavy losses. The company posted losses of almost $1.2 billion on revenues of £1.35 billion back in July.
Those figures were the last straw for CEO Hector Ruiz. He made way for former chief operating officer Dirk Meyer, who made the announcement on the company's future in a conference call to analysts and journalists.
Meyer announced that the new venture will receive $5.7 billion worth of funding from Dubai-based firm Advanced Technology. The money will be spent on building a new manufacturing facility in New York, as well as upgrading an existing plant in Dresden, Germany.
The new manufacturing firm will initially be known as The Foundry Company, with AMD retaining a 44% stake.
The new investment will help AMD keep pace with rival Intel, which has developed a significant technology lead over its debt-saddled rival.
"This is the biggest announcement in our history," says AMD's chief executive, Dirk Meyer. "This will make us a financially stronger company, both in the near term and in the long term, as a result of being out from the capital expense burden we have had to bear."
Meyer also announced that the Mubadala Development Company, an Abu Dhabi company that bought 8.1% of AMD in November, had increased its stake to 19.3% - paying $314 million for the privilege.
Author: Barry Collins
advertisement
- Why Britain's watchdogs have fewer teeth than goldfish
- Tabbed documents: how to make Office 2010 great
- Outlook 2010 People Pane – does it spell death to Xobni
- Microsoft Outlook 2010 screenshots
- Co-Authoring in Word 2010 and SharePoint Foundation 2010
- Microsoft Outlook 2010 screenshots: Backstage view
- Flash 10.1: Developing for Desktop and Device
- Microsoft Office 2010 screenshots: Recover unsaved items
- Microsoft Word 2010 screenshots: Text Effects
- Microsoft Word 2010: inserting screenshots
- Getting to grips with Microsoft's IT Health Environment Scanner
- Virtualise your servers
- The changing face of travel gadgets
- Build your own distributed file system
- The bulletproof Dell that costs an arm and a leg
- Microsoft Office 2010 Technical Preview: Q&A
- Lawnmowers, the TyTN II and one odd insurance request
- There'll never be a bulletproof OS
- How far can we trust apps?
- Five nice touches in Outlook 2010
advertisement
Printed from www.pcpro.co.uk


