AMD Breaks Up

Illustration for article titled AMD Breaks Up

As a former AMD fanboy, this is kind of sad news. AMD will be splitting up into two companies—one that designs chips, and another that makes 'em. The constant need to build expensive new chip plants was a big drag on AMD, which lags behind Intel on multiple fronts. Intel is now the only company left that designs and makes its own chips, a fact that will likely increase its advantage over AMD. The new firm, known as the Foundry Company for now, will makes chips for other companies as well as AMD, who will continue to own 44 percent of it. I just hope this doesn't lead Intel into another reign of complacency and crappy chips, which is what allowed AMD's ascendancy into the solid number two position in the first place, before they started blowing it. [NYT]

DISCUSSION

This is a GREAT thing to happen, it means AMD can design newer chips without worrying about spending money on new foundries to create them. Plus the deal got rid of most of AMD's outstanding debt. If you think this is bad for the industry you don't know what's going on.