AMD tears apart chip to make business detail

October 9, 2008

Dispatch of sina science and technology on October 8 message, AMD and cloth of A of A couplet chief of a tribe plunge into more subordinate than the government ATIC company to announced last night, establish combination production company of a semiconductor temporary denominate is ” The Foundry Company ” . AMD will make chip business infuse is joint-stock company. It is below trade detail:

   Trade after finishing, joint-stock company The Foundry Company will:

• has company total prices to be worth 5 billion dollar, the manufacturing capital fund that includes AMD to offer among them and intellectual property (include its to be in heart is tired this pausing manufacturing base) , the intellectual property of 2.4 billion dollar mixes value employee; The additional capital of the 1.4 billion dollar that ATIC offers; The Foundry Company assumes the liability of the 1.2 billion dollar of AMD;

Amalgamative finance affairs of • and AMD reports;

• establishs an origin to represent compositive board of directors identically from the number of AMD and ATIC;

• has AMD and ATIC only two partner, two are in trade have when the end decide by ballot authority identically;

If • is changed into common stock completely, have respectively by AMD and ATIC 44.4% with the share of 55.6% .

Those who consider the equity measure of AMD and ATIC hold is different, the rights and interests of ATIC step up, specific depend on the growth that whether AMD will urge joint-stock company with coming with capital of infuse of ATIC proportionate means.

• headquarters will be set in Silicon Valley; Research and development and production lead group general to will be located in new York, heart tired this pause and Austin;

Unless • is certain special situation, sign exclusive supply agreement in order to produce AMD processor, product of semiconductor of certain proportional other AMD is produced below competitive situation;

• is in metaphase began to build Fab 4X to produce base in new York 2009, state service attends in new York directly after overall investment is used many 1400 employee;

• plans to rise heart is tired this the productivity of a pausing manufacturer, complete the construction of the manufacturer with another advanced technology to 2009;

• joins IBM technology to develop alliance, enter SOI and development of body silicon technology, the market limits of greatly patulous and joint-stock company;

The • heart that finish is tired this of the factory upgrade and after the construction of factory of patulous, new York, the manufacturing base amount inside limits of whole world of the step up below suitable case, if consider to have feasibility from commercial angle, new manufacturer will be built in Abuzabi;

• announces permanent company name and label.

   Trade after finishing, AMD general:

• and ATIC are had in joint-stock company decide by ballot authority equally;

If • is changed into common stock completely, have joint-stock company the equity of 44.4% ;

• joint-stock company will partake for AMD the debt of about 1.2 billion dollar, ATIC will pay the joint-stock company that 700 million dollar will come to buy AMD hold share to AMD, in addition, mubadala will pay 314 million dollar to AMD, buy 58 million new emission AMD share assures 30 million subscribe is additional. All these will enhance the cash flow ability of AMD greatly;

• benefit handles shirt-sleeve advantage of the technology with computation and graph, energy is designed and develop next generation innovation products centrally;

Delegate of a Mubadala regards • select as its directorate member;

• and joint-stock company independence have financial report. Assume through allowing joint-stock company 1.1 billion (the net value after deducting AMD to provide ready money of about 100 million dollar to joint-stock company) the debt of the dollar, the cash that pays plus ATIC and Mubadala (total amount amounts to) of 1 billion dollar, the cash flow of the company will raise 2.1 billion dollar;

• can need to choose according to capital in the future and not be to be asked to provide more fund to joint-stock company;

Unless • is certain special situation, joint-stock company signs exclusive supply agreement in order to produce AMD processor, sign an agreement with joint-stock company, product of semiconductor of certain proportional other AMD is produced below competitive situation.

   Trade when the end, ATIC general:

• and AMD are had in joint-stock company equal voting authority;

If • is changed into common stock completely, have joint-stock company the equity of 55.6% ;

• is initiative invest 2.1 billion dollar, among them 1.4 billion dollar invests new company directly, additionally 700 million dollar pays AMD directly;

• future is returned 5 years will contributive 3.6 billion to 6 billion dollar, with Yu De tired this of the production factory upgrade and extend, go up in new York city build a new plant.

   Trade when the end, mubadala will:

• buys amount 58 million AMD of 314 million dollar are new issue the stock identifies equity evidence with additionally 30 million, in AMD equity be in after complete fry batter in a thin layer is thin of AMD hold a scale to will rise to 19.3% .

• has authority name election of a delegate is taken up the post of in AMD directorate member.

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