Now some of you may have heard AMD’s big annoucement and for those of you that haven’t I will explain:
AMD is shutting down their manufactering division to cut costs due to the recent losses in the market to Intel over the last few years. So they decided to create a new company and infuse $6 billion over five years into it. The Foundry Company will also assume approximately $1.2 billion of AMD’s existing debt. AMD will first infuse $1.2 billion. This effectively means that AMD is not as powerful as they used to be and don’t have much left in them.