AMD Receives $371M from NFME in Exchange for 85% JV ownership
AMD today announced that it has entered a partnership with Nantong Fujitsu Microelectronics Co., Ltd. (NFME) that will allow it to expand the customer base for its Suzhou (China) and Penang (Malaysia) assembly, test facilities, mark and pack (ATMP) operations.
As part of the joint venture offering, NFME will pay AMD $371 million in exchange for controlling the 85% stake in the facilities. AMD President and CEO Dr. Lisa Su said in an official press release:
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.
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 transaction will cost neutral to its profit and loss statement while significantly reducing its capital expenditures. The chip maker should get net cash proceeds of approximately $320 million after payment of taxes and other customary expenses.
AMD will transition approximately 1,700 of its employees to the new joint venture.
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