AMD is expected to unveil specific details about The Foundry Company on Thursday, March 05, when Bob Rivet, Chief Operations and Administrative Officer and Chief Financial Officer will hold a press conference, which will also include AMD’s financial report.

 

Dirk Meyer, president and chief executive of AMD, said in a prepared statement: “With the close of this historic transaction, AMD and its committed partners have conceived two strong industry-leading companies capable of charting future courses that will dramatically improve the technology industry.”

 

He also added that the Asset Smart strategy is not just about providing the company with long-term access to world-class, leading-edge semiconductor manufacturing, but also about transforming the industry.

 

“We are confident that this strategy and partnership will enable AMD to achieve long-term success based on designing and integrating industry-leading computing and graphics technologies that deliver compelling user experiences,” Meyer continued.

 

The financial terms of the deal that have been disclosed include $700 million received by AMD from ATIC for a portion of its ownership interests in the Foundry Company, while The Foundry Company assumed $1.1 billion of associated AMD debt. Furthermore, Mubadala paid $125 million for 58 million AMD shares, and warrants for 35 million additional shares.

 

According to the terms of the Asset Smart transaction, AMD will improve its cash position with $825 million, through ATIC’s $700 million payment for a portion of its AMD interests in The Foundry Company and Mubadala’s $125 million purchase of AMD shares.

 

Following the same closure, The Foundry Company will have a board of directors made up of representatives appointed by AMD and ATIC, and will consist of AMD and ATIC stockholders alone (each owning 50 percent of The Foundry Company’s shares, and 50 percent voting interest).

 

AMD also revealed that The Foundry Company, which is owned by AMD (34.2 percent) and ATIC (65.8 percent), might suffer ownership changes over time based on differences held in securities by AMD and ATIC, and on AMD’s possible decision to invest proportionately with ATIC in future capital infusions.

 

“ATIC is the ideal partner to help scale AMD’s forty years of semiconductor expertise, and provide a manufacturing foundation for the entire industry to produce the next generation of semiconductor innovations,” said AMD president Dirk Meyer.

 

AMD also announced this week that its chief executive Hector Ruiz, who is leaving the board following the closure of Asset Smart transaction, will be replaced by Bruce Claflin, who has been with AMD for a considerable number of years. Furthermore, Ruiz will now serve as chairman of The Foundry Company.