AMD today announced a reorganization of its business units. The company will autonomize the factories responsible for the production of its chips, in order to achieve cost savings.
The production of chips will be in charge of a joint venture that will manufacture processors not only for AMD, but also for other manufacturers.
This joint venture will gather funds from groups linked to the Abu Dhabi government (through Mubadala Development) and take over the company’s factories in several locations, including Germany. This new company will be called Foundry Co and has an investment of $ 2.1 billion from one of the investor funds, which also assumes AMD’s debt in the business.
Mubadala Development as early as last year had taken an 8.1 percent stake in AMD’s capital. Today it also announced a reinforcement of this position, in an investment of US $ 314 million that will allow it to control 19.3 percent of the American company.
AMD maintains its second place in the global chips but over the past year it has been weakening its financial situation, the result of delays in the launch of new technologies and some strategic errors. In the second quarter of this year the company lost $ 1.9 billion, almost double the amount it had lost last year.