AMD is splitting up!

[Baked]

Oh noes! Just read this over at Engadget.

AMD just issued a release saying that president and CEO Dirk Meyer will be making a "significant corporate announcement" tomorrow, which sounds ominously like those breakup rumors are coming true -- particularly since Dirk's on record saying that the chipmaker plans to spin off manufacturing and fabrication into a new company. We'll see in the morning -- anyone planning on throwing a blowout "last night of the old AMD" party in the meantime?

And confirmation from Wall Street Journal

Advanced Micro Devices Inc. Tuesday is announcing a broad plan to cut costs by spinning off its manufacturing operations to a new joint venture, according to people familiar with the matter.

The new venture, which will make chips for AMD and other companies, will take over facilities that include large AMD factories in Germany, with funding provided by investment entities associated with the government of Abu Dhabi, these people said. They will contribute cash to the venture as well as assume some of AMD's ...

DISCUSS!!!

Edit: Title fixed!

 

[Capt Caveman]

They're just spinning off their manufacturing into a new company. AMD is still around. Smart move.

 

[Ika]

"oh fuck"
was my first reaction

 

[dbk]

Probably won't change anything on the consumer-end.

 

[Injury]

Even though they have been on the road to failure for a few years now, it sucks mostly because with less competition, Intel has a bit less incentive to develop at a faster pace.

Hopefully something positive comes from this.

 

[Bignate603]

Wow... NY times article

 

[Newbian]

Ugh, think the last time I never used a AMD cpu was when I had a p3 500 computer.

 

[Buck Armstrong]

In other news, prices for Intel CPUs and Nvidia video cards more than doubled overnight. Film at 11.

 

[OUCaptain]

Originally posted by: Aflac
"oh fuck"
was my first reaction

same here

"that doesn't sound so bad"
was my second

 

[dbk]

Originally posted by: Bignate603
Wow... NY times article

In addition, the company said two Abu Dhabi investment firms will inject at least $6 billion into the two firms, mostly to finance a new chip factory A.M.D. planned to build near Albany, N.Y., and to upgrade one of the company?s existing plants in Dresden, Germany.

A.M.D., a Sunnyvale, Calif., company that makes graphics, computer and server processors, will own 44.4 percent of the new entity, which has been temporarily dubbed The Foundry Company, a reference to the technical term for a chip factory. Advanced Technology Investment Co., or A.T.I.C., will own the rest.

A.T.I.C., which was formed by the Abu Dhabi government, has promised to put up $2.1 billion immediately and contribute $3.6 billion to $6 billion more to build or upgrade chip fabrication plants, also known as fabs. A.M.D. said the two companies will share voting control equally.

Sounds like a boost.

 

[TridenT]

Originally posted by: Buck Armstrong
In other news, prices for Intel CPUs and Nvidia video cards more than doubled overnight. Film at 11.

I'll be sure to watch

 

[Capt Caveman]

Originally posted by: Buck Armstrong
In other news, prices for Intel CPUs and Nvidia video cards more than doubled overnight. Film at 11.

Why? The OP's title is misleading. AMD is just spinning off it's manufacturing arm into another company.

 

[Crusty]

OP's title is very misleading. I've known that amd was spinning off their fab work for quite some time now, it's hardly AMD dissolving.

 

[SarcasticDwarf]

*sigh* Damn stock price.

 

[rudeguy]

plz fix thread title


kthxbai

 

[Maximilian]

Shame AMD is dead, who will compete against Intel now?

 

[Capt Caveman]

Originally posted by: Maximilian
Shame AMD is dead, who will compete against Intel now?

 

[JS80]

Originally posted by: OUCaptain

Originally posted by: Aflac
"oh fuck"
was my first reaction

same here

"that doesn't sound so bad"
was my second

*yawn* was my reaction as should most people's

 

[GodlessAstronomer]

Wrong forum. I doubt we'll see the effects of this on the consumer end.

 

[her209]

Don't fucking scare me like that... this has been in the works for months!!!

 

[Newbian]

It reminds me of when Nvidia killed off 3dfx and their video card and they controlled the market until ATI started to come back and things heated up again where they produce so many new boards faster and faster.

Granted the title is misleading.

I still am pissed at Nvidia, that huge voodoo 5 was a beast I always wanted to try when it first came out.

 

[frostedflakes]

Interesting, any rumors on who they're partnering with for manufacturing?

AMD+IBM+TSMC?

 

[imported_Lothar]

This has been known for almost 2 months now.

 

[senseamp]

Long overdue. Obvious to everyone that AMD has to go fabless, since it can't afford to run its own fab just for itself.

 

[Buck Armstrong]

Originally posted by: Capt Caveman

Originally posted by: Buck Armstrong
In other news, prices for Intel CPUs and Nvidia video cards more than doubled overnight. Film at 11.

Why? The OP's title is misleading. AMD is just spinning off it's manufacturing arm into another company.

It was a joke. I buy Nvidia cards, but we all know that whenever there's no direct ATI competition to define reasonable price points, they charge $1200 for the mid-range card, and require a mortgage for the high-end.