AMD break-up: two voices from Europe

AMD representatives said the plan to divide the company into two separate businesses is being warmly received by its European workers.

The financial world seems to be falling apart, but Advanced Micro Devices has just landed several billion dollars from two Abu Dhabi investment groups to fund "Asset Smart," a plan to spin off its chip manufacturing operations into a new company, tentatively called "The Foundry Co."

The company still has to convince regulators and shareholders, but the move is already getting an enthusiastic response from customers and employees in Europe, according to company representatives.

"It's one of the most difficult weeks in the history of capitalism," said Emilio Ghilardi, senior vice president and general manager of AMD's sales and marketing activities in Europe, Middle East and Africa (EMEA).

"From AMD's point of view this is a great time because within this financial turmoil, we can say to our clients and our employees that AMD is a much stronger company," he said.

By spinning off its semiconductor fabrication plants, or fabs, into a new company and selling a majority share of that to one Abu Dhabi investment fund, and selling a smaller stake in its continuing business of processor design and marketing to another, AMD hopes to have greater financial freedom to invest in new product development.

"Talking to our key customers in Europe, I only got enthusiastic responses," Ghilardi said.

Ghilardi will stay with what he referred to as "AMD 2.0", the part of the company that will design and market the processors.

That company will retain some manufacturing activities related to testing and packaging, the final stages before the processors are shipped to customers.

"We can say to our customers 'Business as usual'," said Ghilardi, adding that there will be no change in the way the company manages customers orders or priority shipments.

On the other side of the coming dividing line will be Jens Drews, currently AMD's director of government relations for EMEA and a long-time resident of the German city of Dresden, the site of AMD's European semiconductor fabs.

"I've thrown my hat into the Foundry Co. side," said Drews.

Based in Europe, Drews won't be involved in one of the most pressing tasks the new company faces in government relations: negotiating the transfer of subsidies that the state of New York agreed to give AMD in return for building a new fab there.

The Foundry Co. plans to upgrade one of its two existing fabs in Dresden. Drews said he sees no need to seek fresh approval for state subsidies already granted for that operation.

Workers at that plant are taking the changes in their stride.

"In the cafeteria today, I sensed a growing excitement," he said. "It gives us a new opportunity," he said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags AMD

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?