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Globalfoundries marked its third year as a chip manufacturing foundry by buying out the shares owned by Advanced Micro Devices. That fulfills the company’s goal of becoming an independent foundry, or contract chip manufacturer.
The deal will trigger a $703 million charge for AMD, which separated from Globalfoundries three years ago to focus on designing and selling microprocessors. AMD will pay $425 million to Globalfoundries over two years and give up its 8.8 percent stake in the foundry. In return, AMD re-negotiated chip pricing with Globalfoundries and it will not have to make a $430 million payment during 2012.
AMD will also no longer give Globalfoundries exclusivity in manufacturing AMD’s 28-nanometer accelerated processing units (APUs). That will give AMD more flexibility in sourcing its chips.
Milpitas, Calif.-based Globalfoundries will still have AMD as primary customer, but Globalfoundries will now be wholly owned by the Advanced Technology Investment Company (ATIC), the investment arm of Abu Dhabi.
More @ Venture Beat
Globalfoundries marked its third year as a chip manufacturing foundry by buying out the shares owned by Advanced Micro Devices. That fulfills the company’s goal of becoming an independent foundry, or contract chip manufacturer.The deal will trigger a $703 million charge for AMD, which separated from Globalfoundries three years ago to focus on designing and selling microprocessors. AMD will pay $425 million to Globalfoundries over two years and give up its 8.8 percent stake in the foundry. In return, AMD re-negotiated chip pricing with Globalfoundries and it will not have to make a $430 million payment during 2012.
AMD will also no longer give Globalfoundries exclusivity in manufacturing AMD’s 28-nanometer accelerated processing units (APUs). That will give AMD more flexibility in sourcing its chips.
Milpitas, Calif.-based Globalfoundries will still have AMD as primary customer, but Globalfoundries will now be wholly owned by the Advanced Technology Investment Company (ATIC), the investment arm of Abu Dhabi.
More @ Venture Beat
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