AMD completes fab spin-off transaction

As expected, AMD announced the closing of its fab spin-off transaction earlier this afternoon. The company has finalized deals with ATIC and the Mubadala Development Company, and it says The Foundry Company will reveal its final name and logo later this week.

As a result of the transaction, AMD comments that its “cash position” has improved by roughly $825 million: ATIC paid $700 million for the manufacturing assets, and Mubadala coughed up $125 million for AMD stock (as well as warrants for additional shares). Oddly, even though AMD only ended up with a 34.2% stake in The Foundry Company, the press release says the fab firm “will be consolidated with AMD for purposes of financial reporting.” (AMD does have equal voting rights with co-owner ATIC, though.)

As AMD points out, The Foundry Company is now “the world’s only U.S.-headquartered semiconductor foundry.” The fab firm is purportedly worth about $4.3 billion in total—that includes $1.8 billion worth of AMD assets, a $1.4 billion investment from ATIC, and $1.1 billion of debt passed on from AMD. The Foundry Company will start off manufacturing AMD processors based on silicon-on-insulator tech, but in 2010, it should start producing AMD GPUs (and potentially other chips) using a 32nm bulk silicon process.

Comments closed
    • kilkennycat
    • 11 years ago

    l[

      • poulpy
      • 11 years ago

      /[<"owned by the Arabs"<]/ /[<"their Arab friends"<]/ /[<"the Arab share"<]/ Maybe it's because I'm not a native English speaker maybe it's because it's borderline racist but I'm always uneasy with those comments. If your problem is the company being 2/3 foreign owned it's a bit nationalist but just say it. Arab isn't a Nationality AFAIK, so you're referring to a group of people by their race, substitute this by Asian/Caucasian/Black and that really doesn't look good IMO.

    • grantmeaname
    • 11 years ago

    I really like the name “The Foundry Company”

      • FubbHead
      • 11 years ago

      Or just ‘The Foundry’… but that’s probably already taken. 🙂

    • pogsnet
    • 11 years ago
      • SonicSilicon
      • 11 years ago

      Was that a Diablo II reference, because you can’t imbue a socketed item in that game.

        • Buzzard44
        • 11 years ago

        But you can imbue an item, then socket it. I’d rather use my socket quest on a unique item though. Never found imbues to be that useful.

      • Rakhmaninov3
      • 11 years ago

      I miss Diablo II !! I lost my CDs a long time ago. Still have the expansion pack disc, but not the others.

    • MadManOriginal
    • 11 years ago

    q[

      • cal_guy
      • 11 years ago

      Consolidation is generally required for joint venture where each partner has equal voting rights (like this case). What that basically means is that when AMD release financial statement all of the assets and liabilities are added onto AMD balance sheet. Because AMD doesn’t own all of the assets (or owe all of the liabilities) a liability account call minority interest is used to represent the assets and liabilites that are own by AMD. A similar process is used for income statements.

      Here’s a good explanation here.
      §[<http://beginnersinvest.about.com/cs/investinglessons/l/blles3mininters.htm<]§

    • AMDisDEC
    • 11 years ago

    $800M in the pocket.
    That should pay Myers and the other incompetent executives salaries for the next 4-6 months. Following that, it’s garage sale city.
    Wonder how much off the top they giving each other Wall street like bonuses?

      • UberGerbil
      • 11 years ago
        • SecretMaster
        • 11 years ago

        Excellent!

        • BobbinThreadbare
        • 11 years ago

        Release the hounds.

    • Meadows
    • 11 years ago

    Sounds rosy, but when will it get a name?

      • ssidbroadcast
      • 11 years ago

      We should give it a name, how about:

      “Real Men Foundry Systems”

      -/[

        • masaki
        • 11 years ago

        May be “Smart Men Foundry Systems” instead?

      • UberGerbil
      • 11 years ago

      Abu Dhabi Semi Fabi

        • Buzzard44
        • 11 years ago

        Durka durka fab, jihad quantum tunneling jihad, durka!

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