AMD To Announce a Break Up

AMD is expected to announce a break up tomorrow morning, due to growing demand for independent, leading-edge foundry production capabilities and increasing R&D costs. According to sources, the giant chipmaker will be splitting up into two companies, as the first one will be responsible for chips designing and the second, for the manufacturing. Additionally, the company has issued a PR release, saying:

“AMD and Advanced Technology Investment Company of Abu Dhabi to Create New Leading-Edge Semiconductor Manufacturing Company. Mubadala increases investment in financially-stronger AMD, which is simultaneously unlocking the value of its manufacturing assets”

The meaning is that Advanced Technology Investment Company will strengthen AMD’s financial position by purchasing 55.6 percent of The Foundry (manufacturing company), for $5.1 billion dollar, and both sides will cooperate together, in order to create a clear stand alone leader in global semiconductor manufacturing, that will be able to equally confront Intel. Stay tuned.

[AMD]