Back in August new AMD CEO Dirk Meyer said that the company was “just months away” from spinning off its manufacturing and fabrication business into its own company and this morning it’s official.
The new company, temporarily named the Foundry Company, will be free to manufacture independently for other companies while AMD focuses on chip design.
AMD retains 44% ownership in the Foundry Company and each will assume $1.2 billion of AMD’s debt.
Also announced was that Abu Dhabi-based Advanced Technology Investment Company (ATIC) would inject at least $6 billion into the two companies, mostly to finance a new chip factory in Saratoga, New York, as well as to upgrade one of the Foundry Company’s existing plants in Dresden, Germany.
The investment will give ATIC a majority stake in the Foundry Company with 55.6 percent of its shares.