Globalfoundries buys out AMD's remaining shares

The company that was once a part of AMD's chip manufacturing business is now a fully independent organization. In a press release today, Globalfoundries announced that it has acquired the remaining 8.8 percent in stock that AMD owned in the company.

This move means that Globalfoundries is free of any direct AMD ownership. The company was first formed in 2009 after AMD decided to spin off its chip manufacturing division. However, AMD still kept an ownership stake in Globalfoundries, along with Abu Dhabi-based Advanced Technology Investment Company.

AMD has been lowering its stock ownership of Globalfoundries since that time and now that Globalfoundries is fully controlled by ATIC, it will be able to do more business with other companies. Indeed, it has already started to make chips for IBM at its newest plant in New York.

Even though AMD no longer owns any stock in the company, AMD will continue to be one of Globalfoundries' customers. In addition, AMD will pay the company $425 million over two years as part of the stock buyout agreement. Also, AMD won't have to pay Globalfoundries $430 million in 2012 as a result of a chip pricing renegotiation deal.

Report a problem with article
Previous Story

Analyzing the right price for Windows 8

Next Story

Nokia: We need even cheaper Windows Phones

4 Comments

Commenting is disabled on this article.

imo AMD should jump on ARM and cut its losses on the cpu market

They're doing great with their APU but they're having trouble producing these things which makes it hard to market for.

Very interesting. I wonder what the future for AMD holds, the entire landscape is ready to change so much over the next few years. Hell, it already has and AMD seems to have been left by the wayside for most of it (Along with Intel, for that matter).

Kushan said,
Very interesting. I wonder what the future for AMD holds, the entire landscape is ready to change so much over the next few years. Hell, it already has and AMD seems to have been left by the wayside for most of it (Along with Intel, for that matter).

Well tbh, if ARM really starts to take off and x86 falls (it MIGHT happen, no-one knows) then it's a smart move all-in-all, intel's got everything invested in x86, itanium and GPUs, if x86 falls then so will their GPU division.
AMD on the other hand... God knows what'd happen

n_K said,


I can't see x86 falling anytime soon. Mobile devices running ARM might out-fad consumers purely because of its energy efficiency but in business x86 will rule for a long time to come.