Evidently beloved CPU manufacturer AMD has been experiencing financial woes recently and as a result is splitting. I say beloved because if you buy computers you either appreciate them as a less expensive alternative to more expensive Intel CPU’s or for keeping Intel’s prices down through competition – either way AMD = good.
This bit from ZDNet explains the AMD “split”:
AMD said Tuesday that it will split off its manufacturing operations in a deal with the Advanced Technology Investment Company of Abu Dhabi. AMD will also receive a capital infusion from Mubadala Development Company…
Reading Asset smart? AMD moves manufacturing off its balance sheet; Bolsters capital and The Business of Tech: Breaking Up Is Hard to Do – AMD Goes Fabless makes it clear that fabrication facilities that make CPU’s are becoming ever-more expensive to build, upgrade or replace to keep pace with advances in CPU design. So what happens is AMD gains some investment dollars and is free to focus on the business of desinging new chips while The Foundry Company provides the facilites in which to build them. AMD will have 44.4% ownership of The Foundry Company while Abu Dhabi’s Advanced Technology Investment Company (ATIC) will own 55.6%.
My initial thoughts were wondering if Intel would become a client of The Foundry Company to reduce their fab costs and why no American company, companies, millionaires or billionaires took interest in AMD? I suppose at a time when outsourcing has become so popular maybe just another American comapny divesting overseas is of no great concern. I hope I’m wrong.