Since designing and manufacturing the products is constantly becoming tougher for AMD, Advanced Micro Devices Company; it confirmed on Tuesday that it would be splitting in two companies to deal with the issue. These two news companies are created with the aim to deal with designing and manufacturing separately. 

A deal for this purpose has been cut with ATIC, which in the coming five years would invest up to $6 bn in AMD, to help it concentrate more on better designing and more powerful microprocessors. These funds would also support AMD in expanding its Dresden operation and building a state-of-the art plant in Albany, New York. 

The new company will have these plants as the centerpiece, which would be called the Foundry Company. It must be noted that Advanced Technology Investment Co (ATIC), an Abu Dhabi-based firm, will hold 55.6% in the Foundry Company and AMD would hold 44.4%. 

AMD chief executive Dirk Meyer informed in a statement, “With The Foundry Company, AMD has developed an innovative way to focus our efforts on design while maintaining access to the leading- edge manufacturing technologies that our business needs without the required capital-intensive investments of semiconductor manufacturing.”

This move taken up by AMD basically reflects the increasing costs required for developing and manufacturing ever smaller, faster and more energy-efficient chips. The company’s two plants in the city employ around 2,800 workers. 

The workers at ANMD are seeing this step as one of the boldest and biggest one ever taken in the history of the company.