A few months ago, AMD announced that it was spinning off its chip assembly, test, mark, and pack (ATMP) operations into a joint venture with Nantong Fujitsu Microelectronics (NFME). The companies jointly announced the successful closure of that deal today. AMD will receive $371 million from NFME as part of the bargain. In exchange, NFME will get an 85% share of AMD's ATMP operations in Penang, Malaysia and Suzhou, China. AMD will retain a 15% stake in those businesses.
AMD CEO Lisa Su says the deal "marks another step in building a more focused AMD as we complete our transition to a fabless business model, enhance our supply chain operations, and further strengthen our financial position." After taxes and other expenses, the company will get a $320 million shot of cold, hard capital. It also expects the move will "significantly reduce" capital expenditures. AMD will continue to use the joint venture's ATMP services going forward.