AMD announced a new strategy next month

This IT news is provided from the SK Holdings Company Ltd

AMD has seven consecutive quarterly loss, the new global CEO Dekemeiye have to consider a new strategy to implement self-help.

Said foreign yesterday, AMD will be formally announced next month last year, has stressed that the strategy of simplification of assets, will not rule out the manufacturing and design business division, independent operators to reduce operating costs. AMD did not respond to the news. However, earlier in a statement, AMD said it will continue to seek a variety of alternatives, and to play a world-class productivity advantages, to achieve a fit the actual internal and external integration of mixed-mode operation.

This, perhaps, is LU Yi-chi, chairman of AMD last year revealed that the light of assets strategy. He believes that in order to reduce the huge semiconductor plant expenditures can not be ruled out for the buyer to take over part of the assets. At present both AMD, Intel and Samsung and other companies, adhere to the typical IDM (vertical integration, namely research and development and manufacturing兼营), while AMD future so-called "mixed mode operation", perhaps it would imply that the independence of the manufacturing industry, and Parallel research and development operations.

At present, AMD manufacturing base is located mainly in Germany, China, Malaysia, Singapore, its packaging and testing centres. As of now, some Wall Street investors and the industry's view is, AMD should be implemented as soon as possible LU Yi-chi of the above strategy, peeling manufacturing, which will place AMD listed companies, and the introduction of strategic investment, with more manufacturing strength increase Production supply, will it be possible to truly reduce operating costs and to meet Intel's squeeze. Otherwise, 2008 will be difficult for AMD out of losses.

AMD over the past quarter Jukui 1.19 billion U.S. dollars, an interesting topic is, if AMD wants to sell to third-party manufacturers, to look at rival Intel's face. Because these two deadly foe in 2001 signed a "cross-licensing agreement," Lehman Brothers analyst Dimuluke (Tim Luke) study that the agreement provides for a third party if AMD chips in its manufacturing operations, The latter should have the cooperation of at least 50 per cent stake in the company. The agreement will expire in 2010. This means that, within two years even if AMD would like to "inserted straw" to sell the manufacturing sector are not absolute freedom.

However, AMD's mixed-mode of operators may not sell the factory, but introduce strategic investment, so more flexible. Dimuluke thought that the sovereignty of the Fund such as the Middle East Mubadala Development Company is likely to become the buyers of AMD plant. This company with sufficient fund has injected 622 million U.S. dollars in AMD last November to get the acquisition of 8% AMD shares. And other the semiconductor business have implemented strategies of light assets most reach a strategic cooperation with their down or up partners , such as semiconductor giant ASE cooperated with and their clients ex-Pu together investing a factory in Suzhou, known as "the sun and the moon New "Semiconductor.