Proceeds from the sale, to the Mubadala Development Company, would be used for general corporate purposes – including the accelerating it long term growth strategy by investing in research and development, product development and manufacturing capability.
Partly to allay US public concerns about Middle East government investment in technology firms, AMD said this was a non-controlling, minority investment and that Mubadala would not receive any board representation as part of the deal.
The transaction did not present a controlling investment or acquisition subject to review by regulatory authorities like the Committee on Foreign Investment in the US (CFIUS), the company said.
“We proudly welcome Mubadala, a world-class investor, to the AMD shareholder family. This investment strengthens AMD’s ability to deliver customer-centric innovation and choice to the marketplace, creating greater value for all of our shareholders,” said AMD Chairman and chief executive Hector Ruiz.
AMD has been in a slump in recent quarters, and the investment is seen as a timely injection of capital to take to its ongoing battle with rival Intel. AMD has lost more than US$1.6 billion so far this year.
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