AMD against Intel - the competition resumed

October 8, 2008, 11:37 am

   It is now no secret that the second volume of products manufacturer central processors in the world, the company AMD, has experienced serious difficulties in relation to the financial crisis. In connection with this chipmeyker already sell his unit to develop solutions (integrated circuits, processors, control logic) for television systems. The next step for the conclusion of the crisis was to be a single division into two independent companies, one of which would be responsible for the development of new generations of integrated circuits, and the second - for the production of new products. As a possible partner cited:Singapore chipmeyker Chartered, as well as Taiwanese companies TSMC and UMC.
However, the situation has changed - AMD formally announced the establishment of the new company, whose main task will manufacture semiconductor devices as well as the main partner speak Advanced Technology Investment Company (ATIC) from Abu Dhabi, the last government-owned Abu Dhabi and the United Arab Emirates. Originally scheduled to pay AMD $ 1, 2 billion, which would partially and for the payment of debt - total debt AMD is now about $ 5, 4 billion, so that after the completion of the transaction, the value of time would drop to $ 3, 3 billion
But that`s not all - Mubadala Development Co, also located in Abu Dhabi, will pay $ 314 million for the acquisition of additional equity stake in AMD, then, the Mubadala Development will be 19, 3% stake.
As a result, the market of semiconductor devices, a new powerful player, the temporary name The Foundry Company. In order new chipmeykera arrive existing production facilities located in Germany - known factories AMD Fab30 and Fab36. For the next five years, is planning to invest from $ 3, 6 billion to $ 6 billion for the construction of new production facilities in the Saratoga-Country (New York) previously approved by the authorities of the State of New York. But as early as next year`s expected strong expansion of existing factories in Dresden, including the upgrading of one of these plants to modern standards.
The fate of the two companies is as follows:AMD itself will focus its attention on developing integrated circuits, and their production will be The Foundry Company. The new chipmeyker will take orders from outside companies. In fact, AMD will own a significant shareholding The Foundry Company - 44, 4%, while the ATIC will have the controlling stake of 55, 6%. Thus, to say that AMD has lost its own factories can not - they are, albeit partially, remain in its ownership. This means that AMD would not need to commit additional payment for placement of orders for the manufacture of integrated circuits.
Of course, the most interesting are the prospects for a revitalized AMD, because such a substantial financial infusion will allow us, at least for some time to switch from task to overcome the crisis in the immediate strengthening their position in the global market. That means the resumption of real competition between AMD and Intel for market, which would only please the end user. Indeed, after the takeover of the ATI business chipmeykera are not better, and delays in the issuance of Barcelona processors only worsened the situation by making it impossible to fight on equal terms with competing solutions Intel. The advancement of AMD immediately led to an increase in the company`s shares - for a very short period of record growth in equity prices of 18 percent, despite the overall negative rate index DowJones, caused by the global financial crisis. Thus, the future of AMD has not so dark seemed very recently.


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