AMD & fabs

[mimart7]

AMD is giving up its fabs. This is supposed to help with cash flow problems, as well to help it remain competitive with Intel. http://www.nytimes.com/2008/10/07/technology/07chip.html?ref=worldbusiness

[Manic Mouse]

AMD is not giving up its fabs. It is spinning off a wholly-owned subsidiary that can concentrate on the FAB business and possibly provide fab services to outside customers. All in all a pretty smart move.

This makes sense since AMD could not look into this kind of business as a single corporate entity. As a subsidiary handling all of AMD's fab business, there would be no conflicts of interests when accepting fabrication orders from external clients. The gravy on top is that AMD still makes the money from it.

I'm just surprised that the Abu Dhabi investors didn't insist on the fab being located in the UAE. 6 Billion bucks if investment capitol can buy you an awful lot of leverage even with a corp like AMD.

[mimart7]

There is the new fab that is being built here in New York State which will be part of the deal. Manufacturing anything in Abu Dhabi, I would imagine be rather costly.