‘Reshaping’ semiconductor industry

Temporarily called The Foundry Company, the semiconductor manufacturing company will base its headquarters in the US, backed up by Mubadala Development Company’s 19.3% increase in investment in AMD. The Foundry Company will combine AMD’s manufacturing facilities, related assets and intellectual property rights with ATIC’s $2.1bn purchasing stake in the new organisation. From this, $1.4bn will be invested in the new entity with the remainder allowing AMD to purchase additional shares in the Foundry Company. The Foundry Company will also assume approximately $1.2bn of AMD’s existing debt. ATIC has committed up to $6.0 billion investment over the next five years to fund the expansion of The Foundry Company’s chip-making capacity beyond the manufacturing facilities initially contributed by AMD. “Today is a landmark day for AMD, creating a financially stronger company with a tightened focus,” said Dirk Meyer, president and chief executive officer of AMD. “With The Foundry Company, AMD has developed an innovative way to focus our efforts on design while maintaining access to the leading-edge manufacturing technologies that our business needs without the required capital-intensive investments of semiconductor manufacturing.” ATIC’s chairman, Waleed Al Mokarrab, added: “More than a year in the making, this announcement significantly reshapes the global semiconductor industry. It is an investment where all parties see significant opportunity. Independent and well capitalised, The Foundry Company begins day one with an established leading edge customer, an advanced technology roadmap, an R&D partnership with IBM, and a clear plan to scale capacity, providing it the foundation to become a clear leader in global semiconductor manufacturing.”