AMD looks set to become a design house after using an investment of up to $8.4bn from the government of Abu Dhabi, acting through the Advanced Technology Investment Company (ATIC), to spin out its manufacturing business.
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The new manufacturing business unit, dubbed The Foundry Company, will be based in the US and will also assume control of AMD's Germany-based fabs. Ownership of the unit will be split between the two parties, with ATIC taking a controlling stake of just over 55%.
AMD claims the move will strengthen its financial position, improving its liquidity through The Foundry Company's assumption of a massive $1.2bn tranche of AMD's debt.
The new unit will be headed up by AMD senior vice president of manufacturing, Doug Grose, who described the move as a "critical milestone" for the industry.
"By combining leading-edge technology developed in collaboration with IBM and an aggressive capacity roadmap, The Foundry Company aspires to drive the next round of innovation in this industry," said Grose.
The move could be a lifesaver for AMD, which has been hemorrhaging money recently, losing over $1bn alone in Q2. Its stock soared 17% on the New York Stock Exchange following the announcement.