Tuesday, October 07, 2008

AMD Splitting?

Today's ZD.net reported this story: Asset smart? AMD moves manufacturing off its balance sheet; Bolsters capital
AMD said Tuesday that it will split off its manufacturing operations in a deal with the Advanced Technology Investment Company of Abu Dhabi. . . .

When the dealing is done in early 2009, AMD will become a chip design firm and its former manufacturing operations will be lumped into an entity called “The Foundry Company,” a temporary name . . . AMD’s liquidity was hampered by expensive manufacturing operations.
Hmm . . . Expensive manufacturing operations like the one proposed for Luther Forest in Malta, NY near Saratoga? . . .the one we "lost"? Surely anything made in New York State would have to be expensive to support all our government spending.
AMD’s move to separate its manufacturing and design units–dubbed Asset Smart–has been on the drawing board for a while and details have been hard to come by.
That may explain why, so long after Joe Bruno won the chip fab for his region, AMD has yet to commit to the deal in writing.

The Capital District Business Review has a more optimistic story.

Anyway, it will be interesting to see if the state's putting so many eggs in the high-tech basket will pay off. (And as for spinoffs? ..."Fuggeddaboudditt" . . .)


Greens and Beans said...

The devaluation of the U.S. dollar is starting to show its benefit here in the States. The good taxpayers of the State of New York are committed to funding $1.2 billion in state incentives to AMD to build a $3.2 billion chip fabricating facility at Luther Forest. Now known as “The Foundry Company”, the former AMD Corporation has announced that the mystery is over and that it will indeed proceed with their plans to commence producing computer micro chips in Malta, New York and Dresden, Germany. The Albany area is all abuzz with jubilation over this announcement. The local Albany radio talk shows are interviewing public officials and college representatives on their plans to augment this endeavor. This may seem to be a bit premature, but there is now hope. And with this hope there is much discussion and planning for the future of chip fab manufacturing business in the Albany area.

Perhaps now is the time for Oneida County’s economic development agencies to step up to the plate and get our high tech park, slated to be located in Marcy, to become shovel ready . . . AGAIN. The funds have been appropriated again. Therefore, our next step is to follow up and get the job done. We need to develop a new industry (albeit a chip fab or software manufacturing facility) and become progressive in attracting new jobs and peripheral small business concerns to our area to augment this new venture. The economy may be faltering, but the timing is right to strike. The devalued U.S. dollar has produced a favorable atmosphere in terms of fostering foreign investment in conjunction with the high tech iron here in Central New York being HOT. We need to get a delegation of real economic professionals (not our so-called political patronage hacks) but real economic development professionals to travel to Dubai and get acquainted with foreign investors to attract them to our area . . . NOW!

Anonymous said...

Greens and Beans -

I think you're right about the strength of the dollar and the related impact on potential FDI.

I'd really be happy to hear your suggestions. I'm working my butt off to develop leads for Marcy NanoCenter and have seen a great deal of interest. However, I wouldn't call myself a "political patronage hack" - I have no Oneida County political connections, so I'd probably consider myself an economic development professional.

In Germany right now, the companies I'm meeting with seem to be quite impressed with New York State and feel like we're doing the right thing. Right now, the track we're pursuing is meeting directly with companies, as "Dubai" hasn't really been a viable investment option for the semiconductor industry just yet; perhaps that will change with this volatile economic climate and yesterday's announcement.

Please feel free to email me at tdunn@mvedge.org if you have questions or suggestions about the Marcy NanoCenter effort. We need everyone to work together on this, so I'd appreciate your input - you seem to understand the global economic picture.