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AMD to spin off fabs, claims analyst

Daniel Fleshbourne   on 04 September 2008 - 11:03 · 4 comments & 2269 views

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Is AMD about to announce that it's going to reinvent itself as a fabless semiconductor company? That's certainly what one analyst thinks John Lau, an analyst with investment hous Jefferies & Co. this week told his clients that moles have told him AMD has such a strategy in mind and might announce the plan as early as mid-September, the Austin American Statesman writes.

Lau's forecast is that AMD will say it's seeking a buyer or buyers for its Fab 36 and Fab 38 facilities in Dresden, Germany. In the meantime, the fabs will be spun off as a separate company. The spin-off will be free to produce chips for the other companies, not just AMD, and to seek investment on the open market.

View: The full story @ The Reg

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#1 Airlink on 04 Sep 2008 - 20:55
Spin off? More like sell-off. AMD is swimming in red ink and they need to start selling off assets now. That's about as simple as I can make it, folks.
#2 Atreus on 04 Sep 2008 - 22:19
This is bad. Look where we are toady because of AMD.

The prices for video cards are so low and the performance is so high thanks to them.

The processors today are where they are thanks to K7 processors, if it wasn't for them we would have been stuck with the stupid Netburst marchitecture offered by the great Intel, they would have offered us some stupid megahertz increment every six months.

The market sucks for us if there is no competition.
#3 Mike Frett on 04 Sep 2008 - 23:10
I wouldn't worry too much guys. AMD has been down this road before and came back like lightning.
#4 nmesisca on 05 Sep 2008 - 12:23
ROFL

this would be bad .. in what way exactly?

bad because they would save money to pour in R&D ?
or bad because of the liability for manufacturing that will finally fall in to someone elses hands?

sure they are not in financial heaven, but you can hardly say their aquisition of ATI has been a bad move.
they have a couple of winning horses and if they can stick to their own roadmap the consumers should regain enough confidence in the company.

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