AMD Announces Joint Venture with NFME
Subject: General Tech | April 30, 2016 - 12:33 AM | Scott Michaud
Tagged: SoC, nfme, gpu, cpu, amd
Nantong Fujitsu Microelectronics Co., Ltd. (NFME) is a Chinese company that packages and tests integrated circuits. Recently, AMD has been working with China to reach that large market, especially given their ongoing cash concerns. This time, AMD sold 85% of its stake in two locations, AMD Penang, Malaysia and AMD Suzhou, Jiangsu, China, to NFME and formed a joint venture with them, called TF-AMD Microelectronics Sdn Bhd.
I see two interesting aspects to this story.
First, AMD gets about $320 million USD in this transaction, after taxes and fees, and it also retains 15% of this venture. I am curious whether this will lead to a long-term source of income for AMD, even though the press release claims that this structure will be “cost neutral”. Either way, clearing a third of a billion dollars should help AMD to some extent. That equates to about two-to-three quarters of net-loss for the company, so it gives them about six-to-nine extra months of life on its own. That's not too bad if the transaction doesn't have any lasting consequences.
Second, NFME now has access to some interesting packaging and testing technologies. NFME's website claims that this allows them to handle dies up to 800mm2, substrates with up to 18 layers, and package sizes up to 75mm. These specifications sound like it pulls from their GPU experience, which could bring all of that effort and knowledge to completely different fields.
The press release states that 1,700 employees will be moved from AMD to this venture. They do not state whether any jobs are affected over and above this amount, though.