The market is loving AMD's fab spin-off and, in spite of the credit crunch, the chipmaker climbed a whopping 18.7 percent in the first hour and a half of trading at the NYSE.

More details about the deal are beginning to emerge. The Abu Dhabi government, through Mubadala Development, will invest a total of $8.4 billion under the terms of the agreement. It will pay $700 million for a stake in the joint venture, which will consist of two fabs in Germany and a new fab in New York. The new company will be called Foundry Co. and it will also get an additional $3.6 to $6 billion to expand its production facilities over the next five years.

Mubadala will also provide the new company with a $1.4 billion cash injection in operating capital and it will assume $1.2 billion of AMD's debt. Apart from investing in the Foundry, Abu Dhabi will also double its stake in AMD to roughly 19 percent for $314 million. AMD stock is currently trading at $4.93. Two and a half years ago it peaked at $42.10.

Around 3,000 AMD workers out of a total of around 1,600 will move to the Foundry and it will be run by AMD exec Doug Grose. Hector Ruiz will step down as director and head the Foundry Co. board.

More here.