AMD to make "significant corporate announcement" tomorrow, possibly breaking up

AMD just issued a release saying that president and CEO Dirk Meyer will be making a "significant corporate announcement" tomorrow, which sounds ominously like those breakup rumors are coming true -- particularly since Dirk's on record saying that the chipmaker plans to spin off manufacturing and fabrication into a new company. We'll see in the morning -- anyone planning on throwing a blowout "last night of the old AMD" party in the meantime?

Update: The WSJ confirms it's a breakup -- but don't worry, they'll still be friends. [Thanks, aztalon]

Update 2: Official PR is here. How's "AMD and Advanced Technology Investment Company of Abu Dhabi to Create New Leading-Edge Semiconductor Manufacturing Company. Mubadala increases investment in financially-stronger AMD, which is simultaneously unlocking the value of its manufacturing assets" for an exciting title?

[Housen @ Oct 6th 2008 10:51PM]

I'd Love to throw a party.

Woohoo. lets party like its 2012!

[happy_penguin @ Oct 7th 2008 2:05PM]

I'd rather party like it's 1999.

[Steve Jay @ Oct 6th 2008 10:53PM]

AMD was the company that I bought my first processor from. It's kinda sad that they'll be leaving. And to answer your question En I will be throwing down....hard for these folks tonight. Key light and Skol for everyone!!!

[ishism @ Oct 6th 2008 11:24PM]

Same here. My first, AMD Athlon 2400+. Next an AMD Athlon64 3700+, which I am using now.

[ED @ Oct 6th 2008 11:59PM]

Mine too, though I started with the 2000+

[maveric101 @ Oct 7th 2008 12:07AM]

from what i gather they will still design the processors, they will just be manufactured by a spin-off company. no need to worry.

[paolo @ Oct 7th 2008 1:09PM]

Aaaaw, I remember building up a AMD 486 with my dad, back in the day. I actually used it two-three years back when my other computer wasn't working, it was able to run a flash game AND run msn messenger at the same time !

[Kenjis9965 @ Oct 7th 2008 12:13AM]

Same here, first comp was powered by an AMD 486DX4 100mhz :X Second was a K6 200 [It was like WARP SPEED then] And I've had a K6-2, 3, Athlon XP and an Athlon 64 X2!

But it doesnt sound like they're going anywhere, just splitting the manufacturing and R/D to two different companies, it could actually be a better move if they were to partner off...

[Dalcébolus @ Oct 7th 2008 12:48AM]

:'( My first PC had a 286-compatible AMD processor. Then a Pentium 100, but after that went back to my first love, with a super K6-2 400 MHz (overclocked to 450, hehe, and _STILL_ in use), and next my beloved xp1600+, and a turion mk36 2.0 for my current notebook. Oh, and parents PC is a Sempron K8-2800.

Wow... almost all of them AMD processors. I hope this means AMD will be in a better position to compete with Intel.

[KarlW @ Oct 7th 2008 1:07AM]

They're not leaving. They'll still be around - potentially more than ever, as the design division tend to make large profits, and will continue to do so. The good numbers may mean more investment and better designs from AMD.

The bad news is the manufacturing division may not survive. The point of the split is that division tends to make losses (big enough for a split). Competition with Intel is driving them to constantly update their hardware for the smallest transistors and cheapest techniques (that is, expensive hardware, which tends to be most efficient). This company will treat AMD Design as any other customer (it has its own shareholders to think about). Huge losses means higher manufacturing costs, and potentially larger and costlier processors from AMD. This company needs to really have a good business strategy to save it.

The bad news for AMD is that the only other company with the manufacturing capacity and technology to be competitive with Intel is, well, Intel! In short, the merger means that AMD Design will only be able to have AMD Fabrication as a partner. In essence, they'll be no different from now. The only difference is that AMD Fab is going to drive up costs, now that it has an independent business strategy and no subsidy from AMD Design.

[Hawk Pidgeon @ Oct 7th 2008 1:12AM]

My first AMD processor was a 300MHz K6. I loved that thing so much. I still run a socket 939 X2 64 3800+ at 2GHz in my rig... so long, AMD. You'll be missed, even if Intel is kicking your ass right now.

[Totalfixation @ Oct 7th 2008 1:48AM]

My first AMD was the Athlon 500MHZ, over clocked that sucker to 800MHZ and man oh man was it sweet. It just blew Intel away totally. I guess desperate times call for desperate measure. At least ATI and AMD are still one company.

[slarity @ Oct 7th 2008 8:30AM]

Agreed, its sad because Ive always liked AMD more but they just havent competed well in the enthusiest market lately. I actually just got my 2nd Intel cpu ever. Ive had lets see...7 or 8 AMD CPUs in the last 13 years.

[Danny @ Oct 6th 2008 10:58PM]

noo AMD noo

[Juice Daddy @ Oct 6th 2008 11:48PM]

If rumor holds true this will be a sad day for us all...

[Burn Out @ Oct 6th 2008 10:59PM]

I'm lining up my Semprons, Turions, Durons, Opturons, Athlons, Phenoms, and Morons for a hell of a night. We're gonna fight for the right to party 'til we burn out. K,K, and K are gonna be there, as in...AMD K5, K6, and K7.

Intel's not invited.

[Tony @ Oct 6th 2008 11:03PM]

Those were some great times and processors...brings a tear to my eye :'(

[iofthestorm @ Oct 7th 2008 2:09AM]

What? You forgot Athlon 64, K8 forever!

[Boards of Canada @ Oct 6th 2008 10:59PM]

damn... I hope its not that...

anyway they just cant stop existing..!

[Tim @ Oct 7th 2008 12:01PM]

dude, awesome screenname. check out arovane... or my favorite musician of the past few years, kettel.

[Boards of Canada @ Oct 6th 2008 11:01PM]

First the news they are making Blade Runner 2 and now this... what a terrible day.

[Burt Reynolds @ Oct 7th 2008 4:18AM]

Blade Runner 2!?! It's true, the apocalypse is upon us.

(Dig the name btw, good band)

[eiki @ Oct 7th 2008 11:08AM]

boards: got a link??

[aztalon @ Oct 6th 2008 11:03PM]

Wall Street Journal is reporting that they are spinning off their Manufacturing Operations.

http://online.wsj.com/article/SB122334620497110417.html?mod=googlenews_wsj

[Bob @ Oct 6th 2008 11:06PM]

AMD, Noo!! DON'T LEAVE US WITH INTEL!!

[Michael Scrip @ Oct 6th 2008 11:46PM]

Right... because Intel Core2Duo and Quads are horrible...

[ethana2 @ Oct 6th 2008 11:57PM]

Because (_almost_) anything without competition will be horrible, regardless of whether or not it is now.

[tanooki2003 @ Oct 7th 2008 5:15PM]

Some of you seriously ignorant poor illiterate bastards who flunked reading classes or just cannot read need to read my comments on the last page.

if any of you seriously are so called "reading" this is a demise of AMD then you are truly stupid and seriously illiterate.

In case if your numb mouse finger can't click that far I will post it here:

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

Just for some of you chuckheads who are still having a hard time reading through the first paragraph, not understanding what is in the text, or for some of you even more illiterate ignorant fools that still think that this is a case of "intel wins and AMD is dead", here is a more grade 3 level simplified explanation of what is happening to AMD.

"AMD CEO Dirk Meyer explained that the company's fab spinoff means AMD will be able to develop new products without having to invest billions in new chip-making technology and plant capacity. "It will make AMD financially strong and more tightly focused," Meyer said."

Now if you can actually read this and read the entire explanation on AMD's website you can see that this is big. And by that I mean that this is big in a way that Intel, and NV should start becoming scared in the coming years once everything goes into full production. AMD may not have had much resources in the past in perfecting their CPU's and such, now with this whole thing happening they will now have more than adequate resources available at their disposal with companies such as IBM to not only compete with intel, but concentrate even harder on the Fusion, as well as their server/desktop CPU's and having even better ATI Graphics cards. Also once this goes through they will no longer have to worry about huge costs to them on inve$ting a ton of borrowed debt $$ in a new plant or making new chip designs. Without all of that excess overhead they can concentrate on cranking out really great products.

Time will show that having partnerships like this will prove a company to be a lot more cost efficient than having everything in-house.

[Bufsabre @ Oct 6th 2008 11:07PM]

watch the announcement have nothing to do with that, theyre actually revealing that hector ruiz is an alien from 40,000 light years away...


okay maybe the break up is more likely but i still think my announcement would be awesomer

[Jon Doe. @ Oct 7th 2008 12:22AM]

If that was the case you'd think that aliens would have better processing tech then what Intel is shipping and sure as hell better then the crap AMD is putting out.

[giantenemycrab @ Oct 6th 2008 11:09PM]

Oh crap.. We need you AMD. Without you, Intel will rape us with high prices and low performance.

[kastonie @ Oct 7th 2008 12:28AM]

dont go amd we need you....we need your cheaper underperforming processors....

i dont know about you guys, but you get what you pay for...i generally spend more for a better product...

[Dalcébolus @ Oct 7th 2008 12:49AM]

@kastonie it is just now (well, for some time now) that intel has the edge. Equating AMD to 'cheap and underperforming' is misleading at best.

For we all know PIVs where the best design ever, right? (Yuck!) Do you know what is even worse than 'cheap and underperforming'? Expensive and underperforming.

[callum @ Oct 9th 2008 11:03AM]

Yes i agree they will become industry standard and stuff like that and they will add another $300 on to what we should be paying because they can dam Intel scum

[Byrdman @ Oct 6th 2008 11:09PM]

I wonder what this is going to do to the price of intel stock. may be time to buy

[Wiigee @ Oct 6th 2008 11:09PM]

If they go under, im buying a few processors a soon as they hit the clearance prices. Hardcore gaming rig, here i come!

and yes, already got Daft Punk blastin, you bring the beer.

[greyscale @ Oct 6th 2008 11:27PM]

Both are, not surprisingly, at or around their 52 week lows. The obvious course of action is to BUY BUY BUY. Big and long.

[greyscale @ Oct 6th 2008 11:48PM]

How tf did my totally rad comment end up responding to Wiigee? I'm like, 1000% positive I replied to Byrdman.

Engadget, your comment system is so incredibly buggy. Please work on it.



P.S. BUY BUY BUY!!!!!

P.P.S. AAPL too

P.P.P.S. and pretty much every other tech

[ethana2 @ Oct 6th 2008 11:58PM]

I nominate the engadget system for death by...

What was the one thing they did to Wallace's wife in Braveheart? Do that.

[Wiigee @ Oct 7th 2008 12:10AM]

indeed, its really messed up and has been forever!

[linuxamp @ Oct 7th 2008 1:32AM]

Death by snu-snu!

[Reader @ Oct 7th 2008 2:47AM]

Not even close to forever. Back when I joined it was pretty simple and worked just fine. Still had practically all the same features, minus avatars, and worked flawlessly.

[Ian @ Oct 6th 2008 11:21PM]

Breaking the company up into 2 pieces means they're not making processors anymore? Is there a chance they'll still release products, but keep the manufacturing and fab separate?

[Hamidxa @ Oct 6th 2008 11:21PM]

AMD isn't going anywhere.
Jeez, do some of you even read?

This breakup implies that the actual manufacturing and fabrications processes will be in the hands of some spin off entity, whereas the Research and Development (prototypes) of the technologies will still be existent at the core of AMD as we know it.

[futurepastnow @ Oct 7th 2008 12:23AM]

Yeah, but AMD's fabs are its biggest asset. What if this new venture is slow to adopt new process technologies? What if they don't have enough capacity for future AMD chips?

With AMD in control of the fabs, they could respond quickly to fix problems there. Without the fabs, they are dependent on the competence of others.

[Wwhat @ Oct 7th 2008 7:24AM]

It's odd to make a manufacturing wing AFTER they recently sold various fabs, nice conundrum for the CEO of the spinoff, I guess he'll have to do it in his basement.

[decapitor @ Oct 6th 2008 11:22PM]

if AMD goes under then I can't see any way for any upstart to get back in the game unless somebody comes up with a quantum computer, so yeah consumers are pretty boned if this is true.

[AC @ Oct 7th 2008 12:15AM]

if AMD goes under, Via would be the only one left that has a chance.

unless IBM decides to do something for consumers (which would probably never happen)

[Cellenin @ Oct 6th 2008 11:24PM]

Listen up fan bois...before you start yapping about AMD and performance..........realise that if it werent for AMD kicking sand in intels face you would probably just be getting CPUs that break the 500 Mhz barrier.

[o29 @ Oct 6th 2008 11:27PM]

Even if you're not an AMD fan, this is still bad news for all of us consumers.