AMD i lov it. On Tuesday, Advanced Micro Devices finally announced its "asset smart" strategy, which, as expected, involved spinning off its manufacturing operations into a pure-play foundry company.
The new foundry company will be temporarily known as "The Foundry Company". AMD will own a minority stake, or 44.4 percent, with the majority owned by the Advanced Technology Investment Company, a wholly owned fund by the government of Abu Dhabi.
ATIC will be responsible for funding the new foundry company from $3.0 billion up to at least $6.1 billion for the next five years, the key reason AMD signed the deal. AMD had run up quarter after quarter of losses, in part because the company had to continue funding manufacturing operations in a bid to keep up with its arch-rival, Intel. Now that The Foundry Company has been set up, AMD executives said they'll be able to focus entirely on the design of new microprocessors and graphics chips.
The result will be "a stronger and more tightly focused AMD," Meyer said.
The spinoff will be "P&L neutral," meaning that AMD will record neither a profit or a loss on its balance sheet. A small number of layoffs are possible, according to Dirk Meyer, AMD's president and chief operating officer, during a conference call with reporters and analysts Tuesday morning.
However, AMD could realize about a $2.2 billion gain in the combined transactions. ATIC will invest $1.4 billion in The Foundry Company, with an additional $700 million going directly to AMD to purchase additional shares. ATIC will also assume $1.2 billion of AMD's debt. In addition, AMD will also receive an additional $314 million from Mubadala Investment Co., a fund also owned at least in part by the Abu Dhabi emirate, for 58 million new shares and warrants for 30 million shares, which will give Mubadala a 19.3 percent stake in the company, if all of the warrants are exercised. Mubadala will also receive a seat on AMD's board.
After AMD spins off its foundry business, AMD will employ a business model like Nvidia's, which has used foundries like Taiwan Semiconductor Manufacturing Co. to manufacture its graphics chips. According to Meyer, the deal is "consistent with all of [AMD's] IP licensing agreements", including its X86 license with Intel.
Jon Carvill, a spokesman for AMD, said that AMD's CPUs would continue to be made in Dresden. AMD's graphics chips, which are made in foundries owned by TSMC, will be shifted to TFC once it installs bulk silicon manufacturing equipment. TFC could manufacture AMD's graphics chips beginning in late 2009 or 2010, he said.
AMD's moves had been anticipated, expected, and nearly demanded by Wall Street for at least a year, ever since AMD chairman Hector Ruiz tipped the strategy in a conference call. But Ruiz and other executives refused to disclose details. "Yes, it was complex, and that is why it took a while to get it all done," said Bob Rivet, AMD's chief financial officer.
Upon closing of the transaction, The Foundry Company will commence operations with approximately 3,000 employees who will transition into the new company from AMD facilities in Silicon Valley, New York, Dresden, and Austin, the company said. The new company's principal headquarters will be in Silicon Valley and its research and development and manufacturing leadership teams and ecosystems will be based in New York, Dresden, and Austin.
AMD's manufacturing plans remain in place, with one exception. The Foundry Company will continue the planned expansion in Dresden, Germany and begin construction of a new fab in New York State, However, TFC also laid open the possibility of a fab being constructed in Abu Dhabi itself.
Doug Grose, who oversees AMD's manufacturing operations, will run the new company. Hector Ruiz, who oversaw the "asset smart" transition as his personal mission, will be named the chairman. AMD is currently looking for a replacement, Meyer said.
"TBR believes AMD will move into a better position following the implementation of the Asset Smart plan," John Spooner, an analyst at Technology Business Research," said of the plan. "We believe that the chipmaker will become more competitive as it will be able to concentrate its resources on product design, allowing it to focus on delivering products that are consistently competitive with those of Intel. A more competitive AMD product line will bring with it higher revenue and profitability for the chipmaker, reversing its recent string of unprofitable quarters."
Tuesday, October 7, 2008
Friday, September 26, 2008
T-Mobile's G1 in Pictures
Wow. This week T-Mobile introduced the first phone to use the open-source Android operating system. Here's our look at some of the G1's most interesting features.
Sizing Up the G1
T-Mobile this week unveiled the first phone to use the open-source Android operating system developed by Google and its partners. The G1, based on HTC's Dream handset, will be available in the United States starting October 22.
The T-Mobile G1 design is similar to that of the iPhone, but some differences distinguish the two. The G1 is bulkier than the iPhone, nearly 30 percent thicker, and almost 20 percent heavier. Nevertheless, it's a bit narrower than the iPhone and comes with a 320-by-480 touch screen. Below the screen, the bottom juts out slightly, with five buttons and a small BlackBerry-like trackball to aid screen navigation.
Sizing Up the G1
T-Mobile this week unveiled the first phone to use the open-source Android operating system developed by Google and its partners. The G1, based on HTC's Dream handset, will be available in the United States starting October 22.
The T-Mobile G1 design is similar to that of the iPhone, but some differences distinguish the two. The G1 is bulkier than the iPhone, nearly 30 percent thicker, and almost 20 percent heavier. Nevertheless, it's a bit narrower than the iPhone and comes with a 320-by-480 touch screen. Below the screen, the bottom juts out slightly, with five buttons and a small BlackBerry-like trackball to aid screen navigation.
Wednesday, September 24, 2008
Setbacks Postpone Two Space Shuttle Launches
Rilek. NASA has delayed the launch of two space shuttles because of setbacks related to Hurricane Ike.
The U.S. space agency announced Wednesday that Atlantis' STS-125 mission to service the Hubble Space Telescope will likely be delayed from Oct. 10 to Oct. 14 at 10:19 p.m., EDT. The shuttle Endeavour's STS-126 supply mission for the International Space Station will move from its original launch date of Nov. 12 to Nov. 16 at 7:07 p.m., EST.
NASA plans to confirm the dates on Oct. 3, after another Flight Readiness Review. NASA changed the shuttle launch schedule Wednesday such a review.
The closure of NASA's Johnson Space Center in Houston affected Mission Operations, Flight Crew Operations, and training divisions, NASA said. The center shut down Sept. 11, as Hurricane Ike approached the Texas coast and it did not fully re-open until Sept. 22.
Before the closure, workers covered electronic equipment and that work seems to have paid off. Ike took down trees and light poles at the center, causing damage to some buildings' roofs, walls, facades, and windows. Still, the Mission Control Center and other key facilities were largely unscathed, NASA said.
International Space Station flight control resumed from Mission Control in Houston on Friday, Sept. 19, after it had been transferred to a facility in Austin, Texas, and then to the Marshall Space Flight Center in Huntsville, Ala.
The Space Shuttle Program's vehicle processing at Kennedy continues on schedule, but officials decided to postpone the launches because of the lost week of training and mission preparation from the Johnson closure.
NASA will officially announce the new launch dates after a Flight Readiness Review, Oct. 3.
The U.S. space agency announced Wednesday that Atlantis' STS-125 mission to service the Hubble Space Telescope will likely be delayed from Oct. 10 to Oct. 14 at 10:19 p.m., EDT. The shuttle Endeavour's STS-126 supply mission for the International Space Station will move from its original launch date of Nov. 12 to Nov. 16 at 7:07 p.m., EST.
NASA plans to confirm the dates on Oct. 3, after another Flight Readiness Review. NASA changed the shuttle launch schedule Wednesday such a review.
The closure of NASA's Johnson Space Center in Houston affected Mission Operations, Flight Crew Operations, and training divisions, NASA said. The center shut down Sept. 11, as Hurricane Ike approached the Texas coast and it did not fully re-open until Sept. 22.
Before the closure, workers covered electronic equipment and that work seems to have paid off. Ike took down trees and light poles at the center, causing damage to some buildings' roofs, walls, facades, and windows. Still, the Mission Control Center and other key facilities were largely unscathed, NASA said.
International Space Station flight control resumed from Mission Control in Houston on Friday, Sept. 19, after it had been transferred to a facility in Austin, Texas, and then to the Marshall Space Flight Center in Huntsville, Ala.
The Space Shuttle Program's vehicle processing at Kennedy continues on schedule, but officials decided to postpone the launches because of the lost week of training and mission preparation from the Johnson closure.
NASA will officially announce the new launch dates after a Flight Readiness Review, Oct. 3.
Hunt for Palin ‘hacker’: Journalism or mob mentality?
Hunt it. David Sarno has a thought-provoking piece on the blogosphere’s track-down-cum-witch-hunt that fingered David Kernell as the “Sarah Palin Hacker” long before the feds indicted him or anyone else (which they still haven’t done.)
Indeed, a grand jury met today in Chattanooga and failed to issue any indictments. (Times Free Press.)
Sarno’s point, though, is that conservative bloggers (and commenters on this blog) rallied in an absolute mob mentality, screaming for the 20-year-old to be drawn and quartered, claiming the fact that his father is a Democratic state representative to smear the Democratic Party, and making the whole thing about MSM.
Indeed, a grand jury met today in Chattanooga and failed to issue any indictments. (Times Free Press.)
Sarno’s point, though, is that conservative bloggers (and commenters on this blog) rallied in an absolute mob mentality, screaming for the 20-year-old to be drawn and quartered, claiming the fact that his father is a Democratic state representative to smear the Democratic Party, and making the whole thing about MSM.
Tuesday, September 23, 2008
Google mobile due to be unveiled
Looking forward to this. The first mobile telephone using Google's Android software is due to be unveiled on 23 September.
It will be available on the US network of T-Mobile and is expected to be on sale in October.
The first device to run the search giant's operating system will be a handset from Taiwanese firm HTC called the "Dream".
No price for the phone has been given yet but it is expected to be below the important $200 (£107) price point.
Prototypes
Google announced its plans for the Android phone software in November 2007 with a declared aim of making it easier to get at the web while on the move.
To help develop Android, Google also unveiled the Open Handset Alliance - a partnership of more than 30 firms that would work to make phone software easier to work with.
The group includes operators such as Telefonica, handset makers such as HTC and Motorola as well as chip makers such as Intel and Qualcomm.
Many of the partners demonstrated early prototype Android phones at the Mobile World Congress held in Barcelona in mid-February.
The idea behind Android is to do for phone software what the open source Linux software has done for PCs. Developers of phone software can get at most of the core elements of the Android software to help them write better applications.
Smartphones
However, in launching Android, Google faces stiff competition from established players such as Nokia with its Symbian software and Microsoft with its Mobile operating system.
More recently Apple has been gaining customers with its much hyped iPhone.
The Android software is squarely aimed at the smartphone segment of the handset market which adds sophisticated functions to the basic calling and texting capabilities of most phones.
Current estimates suggest that 12-13% of the all handsets can be considered smartphones.
It will be available on the US network of T-Mobile and is expected to be on sale in October.
The first device to run the search giant's operating system will be a handset from Taiwanese firm HTC called the "Dream".
No price for the phone has been given yet but it is expected to be below the important $200 (£107) price point.
Prototypes
Google announced its plans for the Android phone software in November 2007 with a declared aim of making it easier to get at the web while on the move.
To help develop Android, Google also unveiled the Open Handset Alliance - a partnership of more than 30 firms that would work to make phone software easier to work with.
The group includes operators such as Telefonica, handset makers such as HTC and Motorola as well as chip makers such as Intel and Qualcomm.
Many of the partners demonstrated early prototype Android phones at the Mobile World Congress held in Barcelona in mid-February.
The idea behind Android is to do for phone software what the open source Linux software has done for PCs. Developers of phone software can get at most of the core elements of the Android software to help them write better applications.
Smartphones
However, in launching Android, Google faces stiff competition from established players such as Nokia with its Symbian software and Microsoft with its Mobile operating system.
More recently Apple has been gaining customers with its much hyped iPhone.
The Android software is squarely aimed at the smartphone segment of the handset market which adds sophisticated functions to the basic calling and texting capabilities of most phones.
Current estimates suggest that 12-13% of the all handsets can be considered smartphones.
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