Wednesday 4 March 2009

Mubadala raises AMD stake

Mubadala Development has finalised a deal with Advanced Micro Devices (AMD) to take control of its semiconductor manufacturing operations and raise the state-owned firm’s stake in the company.

Advanced Technology Investment Company (ATIC), a unit of Mubadala, is now a 66 per cent owner of The Foundry Company, which manufactures microchips for AMD.
Mubadala also raised its stake substantially with an investment of US$125 million (Dh459.1m) in AMD, which has been hard hit by the drop in demand for computers. AMD’s stock price has dropped 71 per cent since June.

“The business case has not changed. This is a long-term investment in a cyclical industry,” said Waleed al Muhairi, the chief operating officer at Mubadala who was also named to the AMD board.

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