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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risky manoeuvre
by dwave on Sun 14th Sep 2008 21:58 UTC
dwave
Member since:
2006-09-19

A fab is not something that you can out-source easily. Process and quality control are some of the top issues to ensure an efficient yield and engineers have to work in close teams whenever new processes are involved. For AMD this is a highly risky manoeuvre and I assume it has only gotten green light after carefully weighing in all possibilities, all options and the obvious graveness of AMD's current situation.
For the sake of a healthy competition I really hope they have thought this through and it's not just a desperate last move, before descending into irrelevance. All options seem to be on the table now.

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