Advanced Micro Devices (AMD) yesterday said it has received clearance from US authorities for a joint venture with two Abu Dhabi investment companies to help it compete against sector leader Intel.
The US computer chip manufacturer said the plan was cleared by the Committee on Foreign Investment in the United States (CFIUS), an intergovernment agency that can review deals on national security grounds, for the creation of a venture known as The Foundry Company.
The JV is with the Advanced Technology Investment Company (ATIC), a company owned by the Government of Abu Dhabi. ATIC will own a 55.6 per cent share.
The Foundry Company will include manufacturing facilities in Dresden, with plans to expand that site as well as build a state-of-the-art facility in Saratoga County, New York.
The new company will have its principal headquarters in Silicon Valley, and its research and development and manufacturing teams in New York, Dresden, and Austin, Texas.
Simultaneously, another Abu Dhabi investment firm, the Mubadala Development Company, will increase its investment in AMD to 19.3 per cent from the current 8.1 per cent through the purchase of shares and warrants worth $314 million (Dh1.1 billion).
According to AMD, CFIUS has said the investment by Mubadala is not subject to review.
AMD, which has been losing money and falling behind market leader Intel Corporation, has said the move would result in one company that designs semiconductors and another which builds them.