Two months ago AMD made the decision to split into separate design and manufacturing companies. Under terms of the deal, which involved significant investments from the Abu Dhabi government, AMD was to own 44 percent of the new entity involved with chip making, temporarily known as the Foundry Company.
More recently, AMD cut its 4Q revenue forecast by 25 percent citing a sluggish global economy as the culprit. In an effort to reduce its manufacturing costs and realign itself with the current state of the economy, AMD said it will own less of the Foundry Company spinoff.
Abu-Dhabi-based Advanced Technology Investment Company (ATIC) was already a majority owner in the Foundry, and under terms of the new deal, ATIC will increase its share to 65.8 percent, with AMD dropping down to 34.2 percent . Other changes to the original deal include a restructured agreement that now says Mubadala, a minority owner, will purchase 58 million shares of AMD's common stock at a revised purchase price.
"All other material economic terms of the transaction agreements remain unchanged. ATIC will still invest $2.1 billion to purchase its stake in the Foundry Company, of which it will invest $1.4 billion directly in the new entity and will pay $700 million to AMD," the chipmaker said in a statement .