AMD to Break Up

7 10 2008

By Spencer at 7:00 AM

 

AMD, also known as Advanced Micro Devices, is spinning off its fabs into a separate company to cut costs.  Rumors of this have been flying around for quite a while, but only now is the rumor actually coming to fruition.  This new company will be known as Foundry, Co., and will manufacture chips for AMD and other companys as well – funding will be coming from an investment company from Abu Dhabi, who will provide up to $6 billion US dollars.

AMD has hit hard times lately competing against Intel’s Core 2 Duo in the server, mobile, and desktop space.  Its K10 architecture yielded some improvements over its last generation, K8, but its lackluster performance, as well as the well-documented TLB bug that plagued the first generation of K10 processors, have kept its enthusiast use at a minimum.  The only way they are able to stay competitive is cost, which is good for the consumer, but bad for this company, which just posted a $1.189 billion loss for the last quarter in June.  Hopefully, AMD’s upcoming Shanghai class processors, a 45nm die shrink for Barcelona which has the potential to raise performance and clock speeds, will make AMD competitive again.

Source: Wall Street Journal

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