Late last month, AMD announced a proposed plan to sell off and lease back its Singapore facility. This week, the company announced that the sale of its AMD Singapore facility has been completed.
AMD this morning revealed that its Singapore subsidiary had completed the transaction to sell and lease back its facility to HSBC. According to AMD, the transaction has generated proceeds of up to $46 million (net of all fees), and AMD will record a gain of approximately $16 million related to the transaction for Q3 2013. Under the terms of the agreement, AMD Singapore will continue its operations in a portion of the Singapore facility under a 10-year sub-lease agreement with Sabana REIT.
The move is part of AMD's broader strategy to reduce investments and capital in non-core parts of the business. In March of this year, AMD entered into a transaction that saw the company sell its Austin, Texas campus to Southwest Parkway. AMD then leased it back on a 12-year agreement. That deal was said to generate approximately $164 million in cash for the chip maker.
AMD launched its Singapore subsidiary in 1984. In 2012, AMD Singapore switched from a high-volume manufacturing site to an engineering center. It currently employs approximately 500 people.