AMD Gets Receive Cash Infusion as Part of Joint Venture With NFME

Posted by at 9:44 am on May 2, 2016

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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