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FOLLOW UP: AMD Denies Manufacturing Operations Spin Off Plan.

Dirk Meyer, the new chief executive officer of Advanced Micro Devices, said in an interview with a news-paper that the company would spin off its manufacturing operations in months time as a part of its asset smart strategy. This is the first confirmation of the expected action by AMD’s high-ranking executive.

Austin American Statesman news-paper quotes Mr. Meyer as saying that “the company is just months away from a major restructuring that will spin the manufacturing operations off into a separate company, with new ownership”. It remains to be seen whether there will be one or two owners of the “AMD Semiconductor” company or the parent chipmaker will just make initial public offering (IPO) and issues new shares.

“Hector said he will be the most disappointed man on Earth if it [spin off – X-bit labs] is not done by the end of the year, and I will be the second most  disappointed. It certainly needs to happen to remove this cloud over our head relative to the financial viability of the company,” said Mr. Meyer.

Modern fab that makes chips using state-of-the-art process technologies costs several billions of dollars to build and costs hundreds of millions to operate. After spinning off the manufacturing operations, AMD will be able to concentrate solely on development of its central processing units, graphics processing units, chipsets and platforms.

But in-house developed process technologies allow developers of chips to more precisely “meet” their designs to manufacturing processes, which ultimately means higher performance and faster time-to-market.

Despite of the fact that AMD confirmed intention to virtually sell its fab in Germany, there are a lot more details that remain under wraps today and that should be revealed only in several months from now.

Discussion

Comments currently: 8
Discussion started: 07/23/08 04:31:16 PM
Latest comment: 07/25/08 10:34:14 AM
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1. 
that was actualy a misquote. AMD is going to restructure yes but not spinn off their fab's.

or atleast they are not saying officialy that they are.
http://www.theinquirer.net/gb/inquirer/news/2008/07/23/amd-confirms-fab-spinoff (check the update)
0 0 [Posted by:  | Date: 07/23/08 04:31:16 PM]
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2. 
its a tabloid that updates their story's if they are found to be wrong... something xbit labs isnt so good at unfortunately.
and the tabloid got the headsup on the misquete from AMD itself.

besides they CANT sell their fabs yet, intel's x86 licence wont allow it. its just completely impossible until 2010 when they are going to renagotiate the contract (but its likely that part will either be scrapt or changed radicaly as AMD has a strong possition with intel's ongoing anti-trust lawsuits and convicionts around the world)
0 0 [Posted by:  | Date: 07/24/08 03:50:35 AM]
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- collapse thread

 
whatever... they're in deep $hit these days anyways..
0 0 [Posted by:  | Date: 07/24/08 10:34:22 PM]
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actually, with the hd4xxx series out and 45nm cpu's ealyer then expected they're on their way back.
gfx should turn a profit this quarter, and operationally the whole company should make a profit the next.

nehalem is nice but its also really big. and intel doesnt have any manunfacturing advantages anymore when AMD hits 45nm. so AMD can make their 45nm cheaper then intel and still make money. sure they need a lower price then nahalem at the same mhz but that still wont make nehalems cheaper.
they should atleast be competative again on 45nm.
0 0 [Posted by:  | Date: 07/25/08 12:00:46 AM]
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