AMD and the Advanced Technology Investment Company (ATIC) of Abu Dhabi
today announced the creation of a U.S.-headquartered, semiconductor
manufacturing company. At the same time, the Mubadala Development
Company will increase its current investment in AMD to 19.3 percent on
a fully diluted basis.
A press release informs that AMD will
contribute to The Foundry Company its manufacturing facilities,
including two fabrication facilities in Dresden, Germany, as well as
related assets and intellectual property rights. ATIC will invest $2.1
billion to purchase its stake in The Foundry Company, of which it will
invest $1.4 billion directly in the new entity and the remainder will
be paid to AMD to purchase additional shares in The Foundry Company.
The
Foundry Company will also assume approximately $1.2 billion of AMD's
existing debt. ATIC has committed additional equity funding to The
Foundry Company of a minimum of $3.6 billion and up to $6.0 billion
over the next five years to fund the expansion of The Foundry Company's
chip-making capacity beyond the manufacturing facilities initially
contributed by AMD.
These funds will be used by The Foundry
Company to proceed with capacity expansion at its fabs in Dresden,
Germany, including an upgrade of one of its fabs to a state-of-the-art
facility, and to begin construction on a new facility in Saratoga
County, New York, subject to the transfer of previously-approved New
York State incentives.The Board of Directors of The Foundry Company
will be equally divided between representatives of AMD and ATIC. AMD
will own 44.4 percent and ATIC will own 55.6 percent of The Foundry
Company's fully-converted common stock upon its formation.
Doug
Grose will relinquish his current role as AMD's senior vice president
of manufacturing operations to become chief executive officer of The
Foundry Company. Hector Ruiz will relinquish his current role as AMD's
executive chairman and chairman of the board to become chairman of The
Foundry Company.
The release further claims that as a result of
the transactions, AMD will strengthen its financial position and
improve its liquidity through The Foundry Company's assumption of
approximately $1.2 billion in debt, ATIC's $700 million payment to AMD
for ownership interests in The Foundry Company and Mubadala's $314
million paid to AMD for 58 million newly issued AMD shares and warrants
for 30 million additional shares.
Mubadala, an existing 8.1
percent AMD shareholder, will increase its stake to 19.3 percent of
outstanding AMD shares on a fully diluted basis. This will be
accomplished through the purchase for $314 million of 58 million newly
issued AMD shares and warrants for 30 million additional shares.
Mubadala will also have the right to appoint a designee to AMD's board
of directors.The Foundry Company will join the IBM joint development
alliance for both silicon-on-insulator (SOI) and bulk silicon through
the 22nm generation. The alliance consists of a group of leading
semiconductor companies collaborating on next generation silicon
technologies.
Upon closing of the transaction, The Foundry
Company will commence operations with approximately 3,000 employees who
will transition into the new company from AMD facilities in Silicon
Valley, New York, Dresden, and Austin. The new company's principal
headquarters will be in Silicon Valley and its research and development
and manufacturing leadership teams and ecosystems will be based in New
York, Dresden, and Austin.
The transaction is expected to close
at the beginning of 2009 following satisfaction of conditions such as
approvals from regulators, transfer of previously-confirmed New York
incentives to The Foundry Company, and the approval of AMD stockholders
for the issuance of common stock and warrants to Mubadala. Prior to
closing, AMD, ATIC and Mubadala will file a joint voluntary notice of
the transaction for review by the Committee on Foreign Investment in
the United States (CFIUS), a government inter-agency committee chaired
by the Secretary of the Treasury.
Source : http://www.pcworld.in/
today announced the creation of a U.S.-headquartered, semiconductor
manufacturing company. At the same time, the Mubadala Development
Company will increase its current investment in AMD to 19.3 percent on
a fully diluted basis.
A press release informs that AMD will
contribute to The Foundry Company its manufacturing facilities,
including two fabrication facilities in Dresden, Germany, as well as
related assets and intellectual property rights. ATIC will invest $2.1
billion to purchase its stake in The Foundry Company, of which it will
invest $1.4 billion directly in the new entity and the remainder will
be paid to AMD to purchase additional shares in The Foundry Company.
The
Foundry Company will also assume approximately $1.2 billion of AMD's
existing debt. ATIC has committed additional equity funding to The
Foundry Company of a minimum of $3.6 billion and up to $6.0 billion
over the next five years to fund the expansion of The Foundry Company's
chip-making capacity beyond the manufacturing facilities initially
contributed by AMD.
These funds will be used by The Foundry
Company to proceed with capacity expansion at its fabs in Dresden,
Germany, including an upgrade of one of its fabs to a state-of-the-art
facility, and to begin construction on a new facility in Saratoga
County, New York, subject to the transfer of previously-approved New
York State incentives.The Board of Directors of The Foundry Company
will be equally divided between representatives of AMD and ATIC. AMD
will own 44.4 percent and ATIC will own 55.6 percent of The Foundry
Company's fully-converted common stock upon its formation.
Doug
Grose will relinquish his current role as AMD's senior vice president
of manufacturing operations to become chief executive officer of The
Foundry Company. Hector Ruiz will relinquish his current role as AMD's
executive chairman and chairman of the board to become chairman of The
Foundry Company.
The release further claims that as a result of
the transactions, AMD will strengthen its financial position and
improve its liquidity through The Foundry Company's assumption of
approximately $1.2 billion in debt, ATIC's $700 million payment to AMD
for ownership interests in The Foundry Company and Mubadala's $314
million paid to AMD for 58 million newly issued AMD shares and warrants
for 30 million additional shares.
Mubadala, an existing 8.1
percent AMD shareholder, will increase its stake to 19.3 percent of
outstanding AMD shares on a fully diluted basis. This will be
accomplished through the purchase for $314 million of 58 million newly
issued AMD shares and warrants for 30 million additional shares.
Mubadala will also have the right to appoint a designee to AMD's board
of directors.The Foundry Company will join the IBM joint development
alliance for both silicon-on-insulator (SOI) and bulk silicon through
the 22nm generation. The alliance consists of a group of leading
semiconductor companies collaborating on next generation silicon
technologies.
Upon closing of the transaction, The Foundry
Company will commence operations with approximately 3,000 employees who
will transition into the new company from AMD facilities in Silicon
Valley, New York, Dresden, and Austin. The new company's principal
headquarters will be in Silicon Valley and its research and development
and manufacturing leadership teams and ecosystems will be based in New
York, Dresden, and Austin.
The transaction is expected to close
at the beginning of 2009 following satisfaction of conditions such as
approvals from regulators, transfer of previously-confirmed New York
incentives to The Foundry Company, and the approval of AMD stockholders
for the issuance of common stock and warrants to Mubadala. Prior to
closing, AMD, ATIC and Mubadala will file a joint voluntary notice of
the transaction for review by the Committee on Foreign Investment in
the United States (CFIUS), a government inter-agency committee chaired
by the Secretary of the Treasury.
Source : http://www.pcworld.in/
