AMD is expected to announce today that it is to split into two separate
companies, one focused on designing processors and the other on manufacturing
chips.
Sources including The New York Times suggest that AMD will unveil
the move later today, along with an announcement of a fresh injection of cash to
help the company complete a new fabrication plant.
The move is a drastic one for the firm, which until now has designed and
manufactured its own processor chips as does its rival Intel.
However, AMD has seemed to be struggling ever since its acquisition of
graphics and chipset maker ATI in 2006.
Following the split, the foundry side of the company is likely to manufacture
chips for other companies as well as AMD.
Many other chip firms already subcontract manufacturing to foundry companies,
including VIA Technologies which sells low-power PC chips for mini-laptops and
other devices.
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