Monday, December 1, 2008

AMD: reproduction division

October 7, one of the most famous producer of microprocessors - the company AMD - announced its restructuring, which divided it into two companies. One will specialize in the development and design of chips, the second - to release processors. So AMD intends to reduce operating costs and increase their market share.

amd marketingThe company, which will release a chip, will be temporarily named Foundry Company. AMD, it will have 44.4% stake. Attachments from AMD it would be technology, intellectual property, patents, manufacturing facilities including two production sites in Dresden and related assets of factories. Headquartered Foundry Company will be located in Silicon Valley in the USA. The remaining shares of Foundry Company will be at the disposal of an investment company Advanced Technology Investment Company (ATIC), established by the authorities of Abu Dhabi (United Arab Emirates). Advanced Technology Investment Company promised to immediately invest in Foundry Company $ 2,1 billion, with $ 1.4 billion of them will be invested in the organization directly, and the balance will be paid to AMD for some of its shares in The Foundry Company. In addition, ATIC intends to invest in a company for producing chips from $ 3.6 billion to $ 6 billion over the next five years. These funds will be focused on upgrading existing plants in Germany, AMD, as well as to build a new plant for producing chips in the town of Saratoga-Country (New York). In doing so, Foundry Company will be issuing processors, not only on orders AMD. The company also plans to produce chips for other developers and other users. This will allow the company to increase profits that can be directed to the development of new processors. In addition, Foundry Company will cooperate with the IBM Corporation in the manufacture of chips SOI ( «silicon at the detention facility») and 22 nm process. In IBM has been able to welcome the new player market.

Another company from Abu Dhabi - Mubadala Development - also intends to invest in AMD. In 2007, it had already acquired a 8.1% stake in AMD for $ 622 million it now expects to increase its share to 19.3%. In the future, Mubadala Development Company will be able to buy another 30 million shares of the new company. According to AMD Dirk Meyer, the news of the coming reorganization is the most high-profile statement the company in its history. «We will become more financially stronger company in both the short and long term», - summed up Meyer. Seats on the board of directors of Foundry Company will be divided between AMD and ATIC equally. In doing so, AMD will receive 44.4-percent share of the business and ATIC - 55,6%. Executive Director of the new company will Dag Grouz, currently vice president for production of AMD. In previous positions he takes. Chairman of the Board of Directors of AMD Hector Ruiz will also leave his current post to take similar in Foundry Company. After the restructuring, to improve its financial position, AMD focus on designing and developing chips for computers and graphics cards. Total of all actions AMD pay $ 1.2 billion debt, will receive $ 700 million from ATIC and - above all - still $ 314 million from Mubadala Development Company. This is one of the largest UAE investment company controlled by the government. «We are investing in AMD with enthusiasm, and for the first time», - both commented transaction Arab investors. According to market analysts, the current restructuring of AMD and the creation of a new joint venture - this is entirely the result of a strategy, embraced by the leadership of Hector Ruiz. It is anticipated that the restructuring will be completed relatively quickly for such a project - in early 2009. Officials from AMD are not yet comment on all published information.

Does this affect the restructuring of the business of producing video - is also unknown. However, the conversion must still be approved by shareholders and regulatory authorities of the United States and Germany. If that happens, as a result of the reorganization in the world market for microprocessors remains the only major player, independently and develop, and produce the chips - Intel. It would be strange if the Intel Corporation has used the situation and not «uschipnula» its main competitor in the microprocessor market. Almost immediately after AMD announced restructuring, the Intel officially announced that their corporation «had serious questions» to the company AMD on its dealings with the Arab investment firm ATIC. According to press secretary Intel Chuck Malloy, between companies Intel and AMD before the contract was made on cross-licensing, under which AMD Intel pays royalties. As Intel is interpreted as: «Intel has serious questions about the deal because it affects our agreement. Intel Corporation intends to vigorously defend our intellectual property ». According to Malloya, previously at Intel AMD asked the company to disclose an agreement with the investment company Advanced Technology Investment Company, but the latter did not.

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