Menu
AMD shareholders favour manufacturing spinoff

AMD shareholders favour manufacturing spinoff

Advanced Micro Devices shareholders on Wednesday voted in favour of spinning off the company's chip manufacturing operations into a separate company.

The shareholder approval takes AMD a step closer to unloading significant debt and chip manufacturing expenses. AMD has reported consecutive quarterly losses and was looking to spin off its manufacturing arm in an effort to return to profitability.

Shareholders with 50.26 percent of company shares cast a ballot, with 95 percent of those voting in favour of the proposal, an AMD spokesman said. The transaction is expected to close on March 2.

The company last week delayed the vote after the company failed to meet a minimum 50 percent quorum required to approve the transaction. Of around 42 percent of the shares cast then, 97 percent were in favour of the spinoff.

AMD last October announced it would focus on chip design and move its manufacturing arm to a new company temporarily called The Foundry Co. AMD will own a 34.2 percent stake in the spinoff, though original plans called for AMD to have a 44.4 percent stake in the new company. The rest of the company will be owned by Advanced Technology Investment Company, a technology investment firm owned by the Abu Dhabi government.

The new company will assume debt of US$1.2 billion from AMD. Two of AMD's fabrication facilities in Dresden, Germany, will also be transferred to the spinoff.

It will also help AMD focus on designing chips to deliver products that are competitive with offerings from rival Intel. AMD's share in PC processors shipments tumbled to 17.7 percent in the fourth quarter of 2008, compared to 23.1 percent in the fourth quarter of 2007. Intel's market share in processor units shipped was 81.3 percent in the fourth quarter of 2008.


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Tags AMDinternational news

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments