New York (NY) – Advanced Micro Devices (AMD) announced today that it had received clearance from U.S. authorities for the creation of a joint venture with two Abu Dhabi investment firms. The clearance came from the Committee on Foreign Investment in the United States (CFIUS).
The new venture, called the Advanced Technology Investment Company (ATIC, or simply “The Foundry Company,”) will manufacture products for AMD, and will be owned by the government of Abu Dhabi with a 55.6% share.
The Foundry Company includes facilities in Dresden, Germany (including AMD’s Fab 36), as well as future plans for a new state-of-the-art facility in Fishkill, New York.
Headquartered in Silicon Valley, its research and development teams will remain in Austin and Dresden, and eventually in New York.
Another Abu Dhabi investment firm, called Mubadala Development Company, will increase its current investment in AMD from 8.1% to 19.3% by purchasing shares and warrants valued at $314 million. Note: This investment by Mubadal was not subject to CFIUS review.
According to AFP who originally broke the story, “AMD, which has been losing money and falling behind market leader Intel Corp., has said the move would result in one company that designs semiconductors [AMD] and another which builds them [ATIC].”
See AMD’s press release.