The joint venture with ATIC is expected to reduce AMD's costs and allow it to focus on designing rather than making microprocessors.
Shareholders of Advanced Micro Devices have approved the spin-off of the chipmaker's manufacturing operations, which is expected to reduce costs by focusing AMD's efforts on designing rather than making microprocessors.
As a result of Wednesday's approval, AMD is expected to close the deal with Advanced Technology Investment Co., formed by the Abu Dhabi government, March 2. The two companies last year agreed to form a manufacturing joint venture, temporarily called the Foundry Company.
Last week, AMD postponed a shareholder meeting after the company failed to meet the required 50% quorum. The company in the second go-around managed to gather 50.26% of the shares eligible to vote.
Under the joint venture, ATIC will get a 65.8% stake in the manufacturing company, and AMD a 34.2% share. The companies, however, will have equal voting rights. ATIC will pay $2.1 billion for its stake, with $1.4 billion going directly into the joint company and $700 million to AMD.
The deal is seen as critical in helping AMD cut costs following a string of quarterly losses that have amounted to several billion dollars. Last month, AMD reported a loss of $1.4 billion in the fourth quarter of last year, which was narrower than the same period the year before.
Revenue, however, fell 33% from a year ago, as the chipmaker was hit hard by the slump in the PC market caused by the economic downturn.
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