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Details of the deal between AMD and Advanced Technology Investment Company
As you know, AMD and the Advanced Technology Investment Company (ATIC) announced today the creation of a semiconductor component company headquartered in the United States, which is temporarily named The Foundry Company. Some time ago, the financial details of the transaction became known.
Under the terms of the agreement, AMD will transfer its manufacturing facilities to The Foundry Company, including two factories in Dresden, Germany, as well as related assets and intellectual property rights. ATIC invests 2.1 billion. Doll. The United States to acquire its stake in The Foundry Company; 1.4 billion. Doll. The United States of this amount will be directly invested in the new venture, and the remaining amount will be paid to AMD for the acquisition of additional shares in The Foundry Company. The Foundry Company will also take on about 1.2 billion. Doll. US existing debt AMD. ATIC will invest 3.6 billion to 6 billion in The Foundry Company investment fund. Doll. The United States over the next five years to invest in the expansion of The Foundry Company’s chip production, initially made up of AMD manufacturing facilities. This investment will be used by The Foundry Company to begin expanding production at its existing factories in Dresden, Germany, including upgrading one of these factories to state of the art and starting construction of a new state-of-the-art facility in Saratoga Country, NY. previously approved by New York State.
ATIC will own 55.6% of the shares in the joint venture, AMD 44.4%.
Simultaneously, Mubadala Development Company will increase its share of investments in AMD to 19.3% through additional shares.
Doug Grose steps down as AMD Senior Vice President of Manufacturing to become Chief Executive Officer of The Foundry Company. Hector Ruiz steps down as executive chairman and chairman of the AMD board to take over as chairman of The Foundry Company.
Completion of the transaction is expected early next year.