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79 Comments
- cookingboy, on 10/07/2008, -0/+37Do any of you guys even know how to ***** READ? AMD is splitting off their Fabs into a separate company, while the rest of the company remain unchanged. ATI never had Fabs anyway,so they are not even affected in this. So this is just less debt and cost and a large cash infusion from the UAE government. All for the better, look at the stock price today.
- KibibyteBrain, on 10/07/2008, -1/+23Because soon enough application processors with single die CPU/GPU coexistence will be the vast majority of cores sold. Cellphones, consumer notebooks, AV equipment, almost everything that will matter in the mass market. That said, while this was AMD's strategy, it looks like a losing one...
- atgmac, on 10/07/2008, -6/+26Why the ***** did they buy ATI then?
- Ramble, on 10/07/2008, -1/+19Can't argue how awesome the new ATI cards are though.
- fatlip, on 10/07/2008, -3/+18wow CPU fanboys still exist?
- kije, on 10/07/2008, -3/+17Hector Ruiz, Intel's best CEO.
- Skywise, on 10/07/2008, -1/+13Didn't 3DFX attempt this just before they died? (Don't get me wrong, I like AMD... but I'm not sure how this strategy helps them)
- plundstedt, on 10/07/2008, -1/+13Without AMD we'd be paying out the ass for the most basic Intel processor.
Competition FTW. - velocity92c, on 10/07/2008, -4/+15This sucks, I've always preferred AMD to Intel. Hopefully it ends up working out.
- tnoy, on 10/07/2008, -0/+11AMD knows that there is more to the market than high-end gaming machines.
- MarkusX, on 10/07/2008, -3/+13What's a few billions among friends ???
- StupotAce, on 10/07/2008, -0/+9This wasn't unexpected. There have been talks about AMD splitting up and becoming fabless to deal with their debt for months now.
It's sad that it had to come to this, because they would be better off in the long run owning their own fabs, but as long as AMD continues to exist, I'll be buying their products. AMD has always had competitive pricing, so it's not like I'm a big sucker for buying their products, whether intel CPUs are "better" or not doesn't matter. My AMD machines can do what I need them to and they are reasonably priced. I sure hope that their combined GPU/CPU chips are a big hit. That's why they bought ATI and I really hope it pays off for them. - Ahnteis, on 10/07/2008, -0/+8RE: Clbull
You're thinking in terms of gaming computers. There's a lot of room including a lot of devices that aren't typically called "computers" for a CPU+GPU combo. - cookingboy, on 10/07/2008, -1/+9It's the UAE government dude....
- mythicflux, on 10/07/2008, -0/+7The good news for AMD is that the manufacturing business takes on all the debt of the acquisition. Basically AMD was able to blow a huge amount of money by buying ATI and walkaway debt free. The new companies are like this:
AMD1: Chip engineering/design firm
AMD2: Chip manufacturing firm (which is in debt)
By splitting the operations like this AMD1 is now going to be better set to compete with Intel because they don't have to pay for the Fab operations and upgrade costs. They can focus on designing chips and then shop production out to whom ever (which will probably be AMD2 for quite a while). Likewise AMD2 doesn't have to worry about recouping R&D costs. All the money they would have spent can now be used for paying down their debt and upgrading their facilities. They also have a guaranteed partner (AMD1) with guaranteed business but have the ability to also look for other lucrative contracts with other partners. - darthgoat, on 10/07/2008, -0/+6The theory is that if a fab plant is not operating at near 100% capacity it becomes a drain on the company that holds it.
The split allows AMD to keep designing chips and sourcing the fab company to do the manufacturing. It also allows the fab company to get other business from other chip designers that do not have a fab plant.
In theory of course. Reality may have a different plan. Time will tell though. - Chubs83, on 10/07/2008, -0/+5your comment is not just politically incorrect, but is ignorant. AMD is only selling their fab plants. You might also want to check out what other things in the US people in the middle east own. Youre going to have to stop buying a lot of things
- jer21, on 10/07/2008, -1/+6Personally I prefer ***** seven...twelve is too much of a whore.
- drunkturkey, on 10/07/2008, -1/+6Missed the /sarcasm tag....
- thinman1189, on 10/07/2008, -2/+7WTF?
- reticulate, on 10/08/2008, -0/+43DFX did it the other way around - they bought a fab and revoked the licenses of 3rd parties to make cards using their chipsets.
- koldmilk, on 10/07/2008, -2/+6wow... this was unexpected...
- inactive, on 10/07/2008, -0/+4furthermore, it'd be much, much easier for regular-ass computers you get from dell and the likes to be able to sufficiently game since pretty much every computer will have the ability to do complex, repetitive FLOPS w/ great speed (graphic-type calculations)
- IKORKYI, on 10/07/2008, -0/+4a bailout package.
i mean, rescue package. - KibibyteBrain, on 10/07/2008, -1/+5Intel will have plenty of competition coming there way. Most computer needs for the next 5 years are heading farther and farther from Intel's center of expertise into the low power, highly integrated, and somewhat customized arena. They have oldschool competition from ARM cores from all the big Semi giants, new competition by nVidia who is quite healthy and seems to have morale to take on Intel, and from IBM's process which lets companies make whatever CPU they want from an extensible toolkit. With virtualization technology reaching critical mass, the native architecture of the processor, Intel's killer advantage, will becomes irrelevant as well.
So even if AMD isn't looking too good, that doesn't mean Intel competition is down. But I'm not sure its all bad, this could be a good move. AMD might benefit more from being in a more flexible position to pick fabs so they don't have to build their own new fab to make a handful of processors on a cutting edge technology. - PimpinOnWelfare, on 10/07/2008, -6/+10"Bloomberg learned that the government will be providing the two new companies with about $8.4 billion."
... Next thing you know McDonald's is going to get a $2B infusion for big mac sauce. - 1hrSleep, on 10/07/2008, -0/+3We?
- LordVance, on 10/07/2008, -0/+3Yea but twelve does that thing with it's tongue... Seven is just, well, awkward still. A few more years and I bet it'll be a demon in the sack though.
- drunkturkey, on 10/07/2008, -5/+8AMD's too big to fail...
- UltraKill, on 10/07/2008, -0/+3TBolt, your quote is referring to the fab company, not the R&D company.
"In exchange for its investment, ATIC will receive a 55.6% stake in TFC, while AMD will hold the remaining 44.4%." Quote pulled from tgdaily UPDATED page, digg link points to old page from yesterday before announcement... http://www.tgdaily.com/html_tmp/content-view-39627 ...
The TFC being the The Foundry Company, the fab company that AMD sold part of. AMD still owns a good portion of the fab company, just not the majority.
Another Abu Dhabi government company Mubadala Development Co., will have a 20% stake in AMD's R&D company. - whatwhatwhoa, on 10/07/2008, -0/+3I really do I hope this will keep AMD in the game and return to profits. The highly praised Core Duos were the result of stiff competition from AMD's highly efficient processors and a divergence from the pathetic Pentium 4. Everyone wins with competition
- jaxter2010, on 06/17/2009, -0/+3RTFA.
AMD is selling off their fab plants. They will now be strictly R&D, and will outsource the fabrication services they need for their chips. - Jeremyz0r, on 10/07/2008, -0/+3I know their grammar is bad, but.. overkill?
- inactive, on 10/07/2008, -1/+4I use AMD just because of cheapness and also not big on Intel owning the market. =|
- jer21, on 10/07/2008, -0/+2Wait...she's ***** you too...that bitch! She said I was the only one...
- Defiant001, on 10/07/2008, -1/+3Will be interesting to see how this affects AMD's competition against Intel.. Hope its for the best and not a "last stand".
- LordVance, on 10/07/2008, -0/+2Wow, a thread full of people who missed it. Look up, quick, before someone has to explain it even more than drunkturkey already did!
- dn11, on 10/07/2008, -1/+3hey, I love AMD but the truth is: AMD >= treading water
I want them to become more competitive again, but really, it's been a while - ferrariman60, on 10/07/2008, -0/+2Are you retarded? These guys aren't getting a handout from the gov't, you idiot. Abu Dhabi is a city in the UAE, and it has it's own investments. The city of Abu Dhabi is investing in AMD for future returns. Hence, the "investment" part. Look up "ADIA" for more information, but the us gov't has nothing to do with this.
- djphilos, on 10/09/2008, -0/+2First paragraph:
"AMD president Dirk Meyer and other company executives are expected to announce the split at 8 am EDT on Tuesday morning. While we were able to receive a confirmation that this announcement in fact will be the long awaited split into two companies, Bloomberg learned that the government will be providing the two new companies with about $8.4 billion."
Piss poor writing is confusing. Doesnt state Abu Dhabi until later. Writing makes it appear govermnment and Abu Dhabi are supplying money. Geez. - ryansmith18, on 10/07/2008, -0/+2Coulda said the same about AIG, Fannie Mae, Freddie Mac, etc just a month ago.
- reticulate, on 10/08/2008, -0/+2Intel's best chips have been designed in the Middle East.
You better not buy them either. - RaulMuadDib, on 10/07/2008, -0/+1You must read the thread more carefully.
- RaulMuadDib, on 10/07/2008, -0/+1It's a chip company, that doesn't make chips.
- bipolarruledout, on 10/08/2008, -0/+1If they were Intel could they get a government bail out? You know, because the world would come crashing down without x86 processors.
- maj0rm0j0, on 10/07/2008, -1/+2When government money is put into technology, it is always a good thing!
- jaxter2010, on 06/17/2009, -0/+1You can clean up with AMD stock these days if you have the iron stomach to handle it. Its up 10% one day, down the other. You can trade back and forth on these fluctuations.
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