The rumor mill has been grinding for a while now, and some of our sources indicated that AMD would indeed spin off its fabs into a new joint venture. However, we were unable to confirm these reports and AMD denied the persistent rumors on several occasions.

The Wall Street Journal is reporting that AMD will announce the spin-off today, at 8 A.M. in New York. In an attempt to cut costs in line with its Asset light strategy, AMD apparently plans to create a joint venture company with investment funds related to the Abu Dhabi government. The most obvious investor is Mubadala Developement, which currently owns around eight percent of AMD.

The Arab Micro Devices joke is a joke no more, and we will do our best to inform you about the details of the deal as soon as we can. As you probably already know, AMD can't simply sell off its fabs, as it has to retain majority control over the company, thanks to its x86 licensing deal with Intel. Stay tuned for more, it promises to be an interesting day.

More here.

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