AMD Says it's Not Selling Fabrication PlantsCategory: Manufacturers
Posted: July 24, 2008 07:00AM
Published reports began surfacing about a week ago that AMD would be selling its fabrication plants in Germany as part of a cost reduction move. The story was initially reported in the Austin (TX) American-Statesmen based on an interview with AMD's new CEO, Dirk Meyer. Meyer's statements in the interview seemed to point to the fact that AMD was planning to spin off it manufacturing unit. The rumor was given additional legs when the Inquirer site picked up on the interview and claimed the sale was a done deal. An AMD spokesman has denied AMD is selling its fabs and says that Meyer was referring to how the company manufactures its wafers. However, speculation still abounds among analysts. AMD began a strategy termed 'asset-smart' under former CEO Hector Ruiz about which not much is known, but Ruiz is remaining at AMD as executive chairman and will oversee the implementation of the asset-smart program. If AMD does end spinning off its manufacturing arm, that put Ruiz in the logical position of heading up the new company.