Chip maker Advanced Micro Devices has wrapped up its deal to spin off its manufacturing operations as a separate company and appointed chairman Hector Ruiz as chairman of the new entity. AMD tapped board member Bruce Claflin to replace Ruiz as AMD's new chairman.
The spin-off, temporarily known as "The Foundry Company," is jointly owned by AMD and Advanced Technology Investment Co., an Abu Dhabi state-owned venture capital firm. ATIC owns 65.8 percent of the manufacturing company, which AMD said will be formally launched later this week and be given a new name.
The foundry company will continue to manufacture AMD chips but will be free to manufacture processors for other semiconductor companies as well.
ATIC paid AMD $700 million for its stake in the manufacturing spin-off while AMD retains a 34.2 percent stake in the new company. AMD said the transaction and the purchase of 58 million newly issued shares of AMD stock by the Mubadala Development Co. of Abu Dhabi improved its cash position by approximately $825 million. AMD also said that Waleed Al Mokarrab, COO of Mubadala, has been appointed to AMD's board.
Claflin, AMD's new chairman, has been on AMD's board since 2003. He served as CEO of 3Com until he retired in 2006 and previously worked at IBM and Digital Equipment Corp.
Ruiz was CEO of AMD from 2002 until July last year when he was named chairman of the semiconductor company. Dirk Meyer, who was named president and CEO of AMD in July, continues in that role.