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Thread: "ATIC has committed approximately $12 billion to the AMD/Globalfoundries effort"

  1. #1

    "ATIC has committed approximately $12 billion to the AMD/Globalfoundries effort"


  2. #2
    >intel 4004
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    ATIC has nothing to do with the Dubai World debt standstill issue, so yeah, they have the money to pour into AMD's manufacturing arm and slowly making it their own:

    - Partnered with AMD to open up GlobalFoundries
    - AMD signed new cross-licensing agreement with Intel saying the requirements on capital and technology involvement in its own foundries are no longer applicable, thus no longer need to write the numbers of GlobalFoundries on AMD's financial statements
    - ATIC acquiring Chartered Semiconductor and fold into the operations of GlobalFoundries.

    So what's the problem? You're afraid of "Advanced Micro Devices" becoming "Arab Micro Devices"?

  3. #3
    I have no problem with that. I just didn`t know that all that money was committed.

  4. #4
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    Abu Dhabi != Dubai

    -Charlie

  5. #5
    I know it is not the same thing. I just meant that I didn't know 12 billion were committed to AMD. To tell you the truth, how would they use all that money? That's much more than what is needed to pay their debts.

  6. #6
    Quote Originally Posted by MTd2 View Post
    I know it is not the same thing. I just meant that I didn't know 12 billion were committed to AMD. To tell you the truth, how would they use all that money? That's much more than what is needed to pay their debts.
    It's not commited to Amd per se, It's commited to global foundries. They are using it to build the new york facility and to tool up the dresden facilities, also to the buy of chartered.

    To amd "the product company" went only the initial money from the deal celebrated this year, and also their shares and voting rights of the new global foundries.

  7. #7
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    Yeah, $12B only buys you two fabs nowadays....

    -Charlie

  8. #8
    Quote Originally Posted by charlie View Post
    Abu Dhabi != Dubai

    -Charlie
    Abu Dhabi : Dubai = Germany : France

  9. #9
    Quote Originally Posted by charlie View Post
    Yeah, $12B only buys you two fabs nowadays....

    -Charlie
    How many fabs do Chartered Semi have? I was assuming they had a bunch of smaller fabs, but it occured to me I really have no clue how they were set up.

    Anyway, if I recall correctly, the initial deal with AMD had them giving AMD roughly 2 bil in cash, commiting just under 7 billion to the New York State fab(for which I think around 2 billion is construction, a huge portion of the rest tooling up the fab, and I don't know where things like the sewage works and stuff they agreed to build for NYS comes into the cost, within the 2 billion or not). They bought Chartered Semi for around 4billion, one of the other investment groups heavily heavily involved with ATIC and the other investment group that run ATIC also bought circa 400mil of AMD shares when the initial deal went through, aswell as I believe commiting to buy another several hundred million of shares in the future when they release some more shares(few years time I think). They've agreed to buy a set number of shares though, similar to the last lot but its looking increasingly likely that AMD shares will be several times higher, so they could be looking at anything from 1-2billion when that next lot of shares gets bought.

    Frankly, they've commited a lot more than 12 billion in theory, and retooling Chartered Semi and ongoing costs there, and likely some deals with the Singapore goverment to sweeten the deal as Chartered Semi was state owned. I think the 12billion is a rough idea of what will certainly be spent/has been spent, but theres a lot more to come. I don't think any of those numbers involve any R&D costs.

    I think its more than safe to say AMD are going no where, their debt has been reduced substantially and Abu Dhabi won't see their main customer in a huge forward thinking business drop out, especially as they own around 25% of AMD themselves.

    The biggest advantage for AMD in the future, other than deep pockets, is the R&D/Manufacturing equipment costs are now effectively going to be spread across multiple fabs making far more chips, much like Intel.


    The most interesting thing for me, is when Global gets up and running and can actually make chips for other companies, and can make GPU's in the future, TSMC might have to stop screwing around to stay in business.

  10. #10
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    Yeah, I basically agree with your take. When I said 2 fabs, I meant two modern/cutting edge fabs. I was expecting ~$6B each for this round, but it may have gone up.

    -Charlie

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