Details finally due from AMD on "fab-lite"

From EETimes: AMD could announce later this month a significant advance towards its long-touted fab-lite strategy that involves spinning out its Dresden, Germany fabs in a deal that includes an investment from a middle-East group to form a new company. According to reports in the Austin American Statesman, John Lau, an analyst with Jefferies & Co., wrote in an investment note that his sources suggest AMD will say it is seeking a buyer for Fabs 36 and 38 in Dresden, and as a precursor, arrange a spin-out.

According to the analyst, "a Middle East investment group may acquire a large position in the new foundry and fund its purchase with cash", although, no details were given. Last year, United Arab Emirates-based Mubadala Investment acquired an 8.1 stake in AMD.

AMD has made no secret of the fact that over time, it plans to make fewer of its devices in house, but has never given any timescale of when it would shift to more outsourcing. The Dresden facilities were built with significant investment grants from the German and local government, so it is very unlikely the chip maker would close the fabs.

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