Abu Dhabi invests in US chip maker

Advanced Micro Devices says it will split into two companies to remain competitive.

    AMD will be split into two firms, one designing
    and the other making computer chips [AP]

    One of them, Advanced Technology Investment Co (ATIC), will be the major shareholder in the new firm with a 55.6 per cent share.

    ATIC was formed by the government of Abu Dhabi to invest in advanced technology.

    It will invest $2.1bn in the company and assume $1.2bn of AMD's existing debt.

    ATIC will also make up to $6bn will be available over the next five years for the venture.

    The finance includes provisions for expanding capacity at factories in Dresden, Germany, and building a new plant with 1,400 jobs in Saratoga County, New York.

    The deal is thought to facilitate AMD, from California, in concentrating on the design and development of computer chips.

    Second deal

    Mubadala Development Co, the other investment firm from Abu Dhabi, approximately doubled its investment in AMD to 19.3 per cent it was announced on Tuesday.

    Mubadala's shares and warrants in AMD are now worth $314million.

    Dirk Meyer, AMD's president and chief executive officer, said the deals marked a "landmark day for AMD, creating a financially stronger company with a tightened focus.

    "With The Foundry Company, AMD has developed an innovative way to focus our efforts on design while maintaining access to the leading-edge manufacturing technologies that our business needs," he said.

    Waleed al-Mokarrab, ATIC's chairman, said: "Today's announcement significantly reshapes the global semiconductor industry."

    The deal is expected to be closed in early 2009.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: How does your country vote at the UN?

    Interactive: How does your country vote at the UN?

    Explore how your country voted on global issues since 1946, as the world gears up for the 74th UN General Assembly.

    'We were forced out by the government soldiers'

    'We were forced out by the government soldiers'

    We dialled more than 35,000 random phone numbers to paint an accurate picture of displacement across South Sudan.

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.