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AMD To Spin Off Fabrication From Design Work

Posted by timothy on from the splitarama dept.

I.M.O.G. was one of many readers to write with the news that "Advanced Micro Devices plans to announce Tuesday that it will split into two companies — one focused on designing microprocessors and the other on the costly business of manufacturing them — in a drastic effort to maintain its position as the only real rival to Intel. 'This is the biggest announcement in our history,' said 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.'"

2 of 153 comments (clear)

  1. Re:How is this supposed to make things better? by cabjf · · Score: 5, Interesting

    So AMD frees its production facilities to accept contracts from other fabless companies. Meanwhile, they can focus on designing and selling chips and chipsets for motherboards and graphics cards.

    I think this will turn out well for AMD, if they can maintain a good relationship with their foundry spin off and if the foundry spin off can keep up with the competition in terms of quality and technology. Although, I guess this would also free AMD to find other partners if they need to either expand production or find better production facilities in the future without neglecting parts of their own business.

  2. Abu Dhabi Investment Group by twmcneil · · Score: 5, Interesting

    So the bottom line is that the Abu Dhabi Government is buying AMD?

    --
    "The ferrets, they're every where I tell you!"