Top Tech News

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
News & Product Reviews for Tech Leaders
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Friday, April 18th 
24/7/365 Network Uptime!
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Network Security
Tech Trends
Cloud Computing
Hardware
Applications
Microsoft/Windows
Apple/Mac
Mobile Tech
World Wide Web
Big Data
Communications
Hackers
Chips & Processors
Linux/Open Source
Personal Tech
Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Chips & Processors

AMD Sheds Stake in GlobalFoundries, Exits Fab Business

AMD Sheds Stake in GlobalFoundries, Exits Fab Business
March 6, 2012 12:08PM

Bookmark and Share
AMD's decision to exit GlobalFoundries is probably a financial one, said analyst Charles King. AMD has about $2 billion in cash. That pales in comparison with other major tech companies. With AMD's thinner cushion, King said, AMD may be looking for ways to cut unnecessary costs by shedding its stake in GlobalFoundries.

Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.

AMD is no longer in the wafer manufacturing business. The chipmaker has renegotiated its wafer supply agreement with GlobalFoundries, selling its stake in the operation.

As part of the deal GlobalFoundries waived its exclusivity agreement for AMD to manufacture certain 28nm APU products there and AMD agreed to pay GlobalFoundries $425 million over the course of the next year. The move makes AMD fabless, and it comes at a time when IBM is becoming closer to GlobalFoundries.

"The amended wafer supply agreement demonstrates that AMD and GlobalFoundries remain committed as long-term strategic business partners," said Rory Read, CEO of AMD. "We made significant progress last year to strengthen our relationship, and we're pleased with GlobalFoundries' recent performance in meeting our delivery requirements across our product line."

GlobalFoundries' Growth

That's the story from AMD's side. From GlobalFoundries' perspective, the company is celebrating its long-term vision of becoming an independent foundry company. GlobalFoundries is now wholly owned by Advanced Technology Investment Co., which is owned by the government of Abu Dhabi.

"AMD's 32nm processor shipments increased by more than 80 percent from the third quarter to the fourth quarter and now represents a third of AMD's overall processor mix," said GlobalFoundries CEO Ajit Manocha. "In fact, GlobalFoundries exited 2011 as the only foundry to have shipped in the hundreds of thousands of 32nm High K Metal Gate wafers."

In January, GlobalFoundries announced plans for more than $3 billion in capital spending in 2012 to fund expansion of its facilities in Singapore, Germany and New York. The company announced that its newest 300mm manufacturing facility, Fab 8 in New York, started running the first silicon as part of a new customer agreement to develop leading-edge chips for IBM.

Constant Fab Investments

"When AMD hired Rory Read, their new CEO, back in November, it was with the implication that he was going to come in and completely reorganize the company up and down," said Charles King, principal analyst at Pund-IT. "The fact that he's acting boldly has been pretty evident since the first hires he made and his move to acquire SeaMicro last week."

As King sees it, AMD's decision to exit GlobalFoundries is probably a financial one. AMD has about $2 billion in cash. That pales in comparison with other major tech companies that are sitting on tens of billions in cash. With AMD's thinner cushion, King said, the chipmaker may be looking for ways to cut unnecessary costs.

"Companies that run their own fabs or have their own interest in dedicated fabs are becoming the exception rather than the rule. It's an expensive manufacturing process and it's changing so rapidly that a company can invest billions of dollars into a new fab today and have to significantly retool or replace those fabs just a few years down the road," King said.

"For a lot of companies, including AMD, it probably makes sense to exit that part of the business and work more with dedicated fab service providers as the need arises."

Tell Us What You Think
Comment:

Name:



 Chips & Processors
1. Intel Reports Lower 1Q Net Income
2. Qualcomm Debuts New Snapdragons
3. Samsung Touts Graphene Breakthrough
4. Nvidia Launches New Products
5. Intel Acquires Basis Science




 Most Popular Articles
1. Salesforce CRM Gets Industry Specific for Internet of Customers
2. $200 'Micro' 3D Printer Earns Big on Kickstarter
3. Fast Seagate 6 TB Drive Offered for Enterprise Data Centers
4. Google Video Shows Off Modular Project Ara Phone
5. Last Security Patches Coming Tuesday for XP, Office 2003

Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  'Like' Cheerios, Give Up Right To Sue
  Heartbleed Could Cost Millions
  Google Earnings, Sales Disappoint
  Profit and Revenue Slip for IBM
  Review: Windows Embraces the Past

 Technology Marketplace

Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
BMC's I.T. solutions unleash the power of your business
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise I.T.
BMC's I.T. solutions unleash the power of your business
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug leaked will come at a very hefty price.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 
Canadian Teen Arrested for Heartbleed Hack
One week after the OpenSSL Heartbleed vulnerability was unveiled, Canadian authorities have made the first arrest -- a London, Ontario teenager -- connected to exploiting the security hole.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Google Releases Chrome Remote Desktop App for Android
You're out on a sales call, and use your Android mobile device to grab a file you have back at the office on your desktop. That's a bit easier now with Google's Chrome Remote Desktop app for Android.
 
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 

Navigation
Top Tech News
Home/Top News | Network Security | Tech Trends | Cloud Computing | Hardware | Applications | Microsoft/Windows
Apple/Mac | Mobile Tech | World Wide Web | Big Data | Communications | Hackers | Chips & Processors
Linux/Open Source | Personal Tech | Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 Top Tech News. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.