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AMD To Receive Cash Infusion As Part Of Joint Venture With NFME

AMD announced that it has entered a partnership with Nantong Fujitsu Microelectronics that will combine the strengths of the two companies. NFME will obtain 85 percent of AMD's Penang (Malaysia) and Suzhou (China) assembly, test, mark and pack (ATMP) operations. AMD will retain 15 percent of the manufacturing facilities, and will receive $371 million from NFME, in exchange for the controlling stake in the facilities.

"Combining AMD's world-class teams and facilities in Penang and Suzhou with NFME's expertise in the growing assembly and test market will create a new outsource assembly and test leader with the scale and capabilities to help us deliver our upcoming high-performance technologies and products that can re-shape the industry," said AMD President and CEO Dr. Lisa Su. "The creation of this joint venture marks another step in building a more focused AMD as we complete our transition to a fabless business model, enhance our supply chain operations, and further strengthen our financial position."

AMD said that this deal should be cost-neutral on the company’s profit and loss statement. The sale of the ATMP operations should net the company cash proceeds of approximately $320 million after paying taxes and other expenses. AMD said that its capital expenditures will also go down significantly as a result of this deal.

AMD said approximately 1,700 of its employees have been transitioned to the new joint venture.

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Kevin Carbotte is a Contributing Writer for Tom's Hardware US. He writes news and reviews of graphics cards and virtual reality hardware.
  • Digmeahole
    This is old news..2015. The only update is that the closed the deal.
    Reply
  • Zincorium
    Unless AMD is deliberately becoming an IP-only company, this seems like bad news long term. They say that they're decreasing their capital expenditures as though it's a good thing, but a company that needs to grow needs to do exactly the opposite. If they're just taking the money and using it to pay operating costs or shareholders, and not reinvesting into revenue generation, that's a death spiral.
    Reply
  • tominsac
    well as old as mx fx 8350 is and would like a skylake, I appreciate AMD more because they didn't just layoff 15,000 American workers after hiring 12,000 foreign. idc how slow my pc is, intel can suck ass
    Reply
  • kinney
    17899871 said:
    I think this could be the thing AMD needs, it could make them really think outside the box and make something affordable and practical. At least I am hoping for this as I have been a fan of AMD since Athlon, and an ATI fan since Rage Pro.My main rig is an i7 but AMD has left me no viable option. I want high performance without making a sweat lodge in my office or having to have a massive computer, it's bad enough my 280x is always above 60c with dual fans on at 70% open "cooler master elite 130" case during gaming or hd 4k movies or youtube or even a website with lots of visuals. GPU usage is definitely growing as CPU usage is Plateauing but,my point is this thing heats up my office with just the GPU alone.

    The heat is an AMD feature. If you swapped in a Maxwell card you'd see a big reduction there. I have an AMD card too and my buddy has a 980Ti. I idle around 60C and he idles closer to 30C. Same cases, same room temp. Just more things on the desktop accelerated from NV as far as I can tell and better optimized.
    Reply
  • jasonelmore
    Who wants AMD's IP? i mean, i guess GPU's are ok, but the x86 license they own is NON TRANSFERABLE
    Reply
  • blazorthon
    Who wants AMD's IP? i mean, i guess GPU's are ok, but the x86 license they own is NON TRANSFERABLE

    AMD is still a large tech company. They wouldn't get far without owning a LOT of patents and such.
    Reply
  • iam2thecrowe
    17899871 said:
    The heat is an AMD feature. If you swapped in a Maxwell card you'd see a big reduction there. I have an AMD card too and my buddy has a 980Ti. I idle around 60C and he idles closer to 30C. Same cases, same room temp. Just more things on the desktop accelerated from NV as far as I can tell and better optimized.
    The temperature of the GPU is no indication of weather or not it is actually using more power or producing more heat. They use completely different heat sinks and fan profiles aimed at different target temperatures, thus changing how hot they are at idle. The hotter GPU could actually be producing less heat, its just the cooling solution isn't dissipating it away from the gpu as fast as the cooler one,
    Reply
  • turkey3_scratch
    17903179 said:
    17899871 said:
    I think this could be the thing AMD needs, it could make them really think outside the box and make something affordable and practical. At least I am hoping for this as I have been a fan of AMD since Athlon, and an ATI fan since Rage Pro.My main rig is an i7 but AMD has left me no viable option. I want high performance without making a sweat lodge in my office or having to have a massive computer, it's bad enough my 280x is always above 60c with dual fans on at 70% open "cooler master elite 130" case during gaming or hd 4k movies or youtube or even a website with lots of visuals. GPU usage is definitely growing as CPU usage is Plateauing but,my point is this thing heats up my office with just the GPU alone.

    The heat is an AMD feature. If you swapped in a Maxwell card you'd see a big reduction there. I have an AMD card too and my buddy has a 980Ti. I idle around 60C and he idles closer to 30C. Same cases, same room temp. Just more things on the desktop accelerated from NV as far as I can tell and better optimized.

    That sounds more like anything like your fans having 0 RPM mode.
    Reply