Feeds

AMD spins off manufacturing biz

Fabless future for x86 number two

3 Big data security analytics techniques

AMD is splitting into two companies - one to design chips and one to carry out the debt-dependent business of actually making them.

Two Abu Dhabi investment firms will hand over at least $6bn to the two new firms and to build a new chip fab near Albany, New York and to refurbish one in Germany.

The chip-making business will be 44.4 per cent owned by AMD and is using the working title the Foundry Company. The rest of the firm will be owned by Advanced Technology Investment Company. ATIC was formed by the Abu Dhabi government and has equal voting rights with AMD.

The Foundry Company will make chips designed by AMD but will also manufacture for other companies.

The turnaround has been a long time coming and is needed for AMD to get back into competition with Intel. AMD has lost money for the last six quarters and has had to lay off staff. The number-two chip-maker is also carrying more than $5bn in debt.

AMD's chief executive Dirk Meyer told the New York Times: “This is the biggest announcement in our history. 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.”

Building or upgrading a foundry requires huge amounts of cash, or more usually debt, and given the current credit crisis getting and maintaining such loans is increasingly expensive. Foundries depend not just on cheap debt but also generous handouts from governments keen for the jobs. The tricky part is guessing future capacity. If you build too much expensive capacity and don't use it then you lose money. Conversely, under-capacity and chip shortages can hit the bottom line just as hard.

AMD hopes that by offering its fabs to other designers it will be able to reduce this drag on resources. ®

SANS - Survey on application security programs

More from The Register

next story
Leaked pics show EMBIGGENED iPhone 6 screen
Fat-fingered fanbois rejoice over Chinternet snaps
Oh no, Joe: WinPhone users already griping over 8.1 mega-update
Hang on. Which bit of Developer Preview don't you understand?
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
True optical zoom coming to HTC smartphone cameras
Time to ditch that heavy DSLR? Maybe in a year, year and a half
Rounded corners? Pah! Amazon's '3D phone has eye-tracking tech'
Now THAT'S what we call a proper new feature
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
US mobile firms cave on kill switch, agree to install anti-theft code
Slow and kludgy rollout will protect corporate profits
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
Leaked photos may indicate slimmer next-generation iPad
Will iPad Air evolve into iPad Helium?
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.