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AMD gets official nod for Abu Dhabi joint venture


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US says OK

 

AMD has received an approval from US authorities for a joint venture with capital from two Abu Dhabi investment firms. The cash will be used to help it compete against Intel and the US authorities were a bit worried about the security implications of giving so much technical detail to an Arab country.

In the end the plan was cleared by the Committee on Foreign Investment in the United States (CFIUS). The venture is with the Advanced Technology Investment Company (ATIC), a firm owned by the government of Abu Dhabi. ATIC will own a 55.6 percent share of the venture.

The deal means that AMD through its joint outfit "The Foundry Company" will keep its  manufacturing facilities in Dresden, Germany with plans to expand that site as well as build a state-of-the art facility in Saratoga County, New York. The Foundry Company will be based in Silicon Valley, and its research and development and manufacturing teams in New York, Dresden, and Austin, Texas.

Another Abu Dhabi investment firm, the Mubadala Development will increase its investment in AMD to 19.3 percent from the current 8.1 percent through the purchase of shares and warrants worth 314 million US dollars.

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