Linked by David Adams on Fri 12th Sep 2008 16:30 UTC, submitted by irbis
AMD AMD plans to spin off its chip manufacturing operations by year's end, probably by hawking them outright or by inking a partnership with a larger chipmaker -- a maneuver akin to selling a house and leasing it back. Meyer is vague on the exact timing of a deal, but he knows it's probably the best thing the company can do quickly to improve its financial position, and its reputation with investors. A successful transaction would see AMD pocket a good chunk of cash, while handing manufacturing to a company that can better keep pace with Intel's world-class operations.
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So who will churn out AMD's chips if they sell off their Fabs? CPU chip manufacturers push the technology envelope more than manufacturers of other chips. So who does that leave? Really, only INTEL and IBM. Third party Fabs like TMSC can't really play in this league. All in all, this move would really be a shame, not only because it might mean the immanent demise of AMD as a viable competitor to INTEL in the CPU space, but because AMD is part of the "old-guard" of chip manufacturers. They were making CPUs before INTEL was - any one remember the 2901 bit-slice CPUs they made that were the core of many minicomputers back in the day?

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