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AMD shares up on fab spinoff reports

Posted: 08 May 2008 ?? ?Print Version ?Bookmark and Share

Keywords:AMD shares? fab spin-off? fab-lite strategy?

Advanced Micro Devices Inc. shares climbed amid reports that the chipmaker will split itself into two parts, including the spinoff of its fab operations.

According to report, the company also filed a new antitrust suit against rival Intel Corp. The filing is part of the AMD's 2005 antitrust suit against Intel.

Meanwhile, for some time, AMD has talked about a new fab-lite strategy, but it has failed to provide any details. But according to reports from Reuters, AMD could spin off its manufacturing arm and keep its design group.

"What's been bandied about is the asset-light part, which could be the partial separation of AMD's design and manufacturing arms," CRT Capital Group analyst Ashok Kumar, told Reuters. "On the manufacturing side, they would likely partner with Chartered, but maintain a 51 percent ownership of any such venture."

- Mark LaPedus
EE Times





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