AMD going "Fabless"

http://tech.yahoo.com/news/ap/2008 [...] ufacturing

In a move to dramatically cut costs and better compete with Intel Corp., chip maker Advanced Micro Devices Inc. said Tuesday it will spin off its factories into a new joint venture with investors in the Persian Gulf state of Abu Dhabi.

Foundry's board will be equally comprised of executives from AMD, which will own 44.4 percent of the company, and Advanced Technology Investment, which will own a 55.6 percent stake.

An AMD senior vice president, Doug Grose, is to become chief executive of Foundry Co., and Ruiz, who had been AMD chairman, will step down to take on that post at Foundry Co.

Ruiz noted during a conference call that semiconductor companies, faced with rising costs from ever-more advanced chip production, are looking for independent foundries to do their manufacturing. It is not uncommon for chip companies to focus on design and development only — these are called "fabless" semiconductor companies and include graphics chip maker Nvidia Corp.

My confidence in AMD is now fully restored.

http://www.tomshardware.com/forum/ [...] el-amdhabi