News
NFME and AMD Close $436M Transaction and Launch New JV
April 2016 by Emmanuelle Lamandé
AMD and Nantong Fujitsu Microelectronics Co., Ltd (NFME) announced that they have closed the transaction to create a joint venture offering differentiated assembly, test, mark, and pack (ATMP) capabilities to both AMD and a
broader range of customers.
Key highlights of the deal include:
– NFME’s affiliates have purchased an 85 percent share of AMD’s Penang,
Malaysia and Suzhou, China ATMP operations and act as controlling partner for the
new joint venture business.
– AMD received from NFME approximately $371 million, excluding purchase
price adjustments, with net cash proceeds of approximately $320 million after
payment of taxes and other customary expenses. AMD retains a 15 percent ownership of
the Penang and Suzhou operations.
– The transaction is expected to be cost neutral to AMD’s P&L while
significantly reducing AMD’s capital expenditures. AMD will account for its 15
percent ownership stake in the joint venture and its results of operations under the
equity method of accounting.
– Approximately 1,700 AMD employees transitioned to the joint venture.
