AMD has closed a deal with two Abu Dhabi investment firms that spins off its manufacturing operations into a separate company.
AMD will receive $700m from investment firm Advanced Technology Investment Company (ATIC), which is owned by the Abu Dhabi government. That will provide AMD a 34.2 percent share of the manufacturing spin-off tentatively called The Foundry Company, said Michael Silverman, an AMD spokesman. The rest of the stake is owned by ATIC.
The Foundry Company is expected to formally launch later this week and will receive a new name, AMD said. Last month, AMD shareholders approved spinning off the manufacturing operations during a vote.
AMD last year said it would spin off its manufacturing operations to focus on chip design and cut manufacturing costs. AMD has reported consecutive quarterly losses and was looking to spin off its manufacturing arm in an effort to return to profitability.
AMD on Monday also appointed Bruce Claflin as a chairman of the company's board of directors, replacing former chairman Hector Ruiz, who retired. Claflin has been a member of AMD's board of directors since 2003, AMD said. Ruiz will now be chairman of The Foundry Company's board.
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