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Technology | guardian.co.uk

Feed URL  Technology | guardian.co.uk

FeedRank: 7/10  7/10  Very Good  ---  www.guardianfeeds.co.uk
http://www.guardianfeeds.co.uk/technology/rss
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AMD to split into two companies
Tuesday, October 07, 2008 --- 92 days ago
http://www.guardianfeeds.co.uk/c/288/f/7511/s/21101f0/l/0L0Sguardian0O0Cbusiness
AMD, the world's second-largest maker of computer processors, has announced radical plans to split its business. In an attempt to slash costs and continue fighting the market leader Intel, AMD will spin off its manufacturing arm into the Foundry Company with the original firm remaining in computer chip design. The deal has been made possible by $6bn (£3.4bn) of capital from two Abu Dhabi-based investment companies, Advanced Technology Investment Company (ATIC) and Mubadala Development. Dirk Meyer, AMD chief executive, said it would create "a financially stronger company with a tightened focus". The new entity will inherit plants across the US and Germany and about 3,000 of AMD's 15,000 staff. After years of trying to break the dominance of Intel, AMD is still a distant second. It accused Intel of anti-competitive practices, sparking investigations, but failed to convince many computer manufacturers. Two years ago AMD merged with the processor firm ATI in a $5.4bn deal. But that left AMD with several underperforming divisions and eventually the deal was written down by almost $900m. Under the new plan, to come into force in 2009 if shareholders agree, Hector Ruiz will become chairman of the Foundry Company, while Meyer will continue in his role at AMD. Technology guardian.co.uk © Guardian News and Media Limited 2008 ...




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