Derrick Meyer, chief executive officer of Advanced Micro Devices, said in an interview that AMD’s stake in Globalfoundries, a semiconductor manufacturing joint-venture between AMD and Advanced Technology Investment Company, will gradually shrink as the company is more likely to invest into its own products rather than into manufacturing.
“I suspect we will find uses of our cash in the form of product investment instead of capital investment,” said Dirk Meyer in an interview with the Wall Street Journal.
At present AMD owns 34% stake in Globalfoundries, whereas the rest belongs to ATIC. The latter claims that it will receive “committed future funding of a minimum of $3.6 billion and up to $6 billion over the next five years to support growth even amidst times of economic uncertainty”. Considering the current financial state of AMD, it may simply be unable to invest into Globalfoundries in the coming years.
In case AMD becomes a minor stakeholder in Globalfoundries, its arch-rival Intel may question whether the contract maker of chips is a subsidiary of AMD and hence can produce x86-compatible microprocessors.
AMD will stay Globalfoundries' largest client and have board representation in the company “for years”, Mr. Meyer is reported to have said, adding that the foundry will be a key strategic partner.