Abu Dhabi’s government has taken an 8% stake in the chipmaker company, Advanced Micro Devices (AMD). AMD has been struggling to control costs while trying to refocus on its research and development efforts, have received $622 million worth of investment from the Mubadala Development Company.
The Mubadala Development Company has received 49 million newly issued shares at $12.70 a share, the closing price of AMD share on Thursday. As a part of the deal, Mubadala will also get a seat in the AMD board.
The news had little effect on AMD stocks, which had already declined to a 52-week low from $23 in December, last year. These days AMD is striving to maintain its market share gains while it is facing a tough competition from the world’s leading chipmaker Intel. Intel is busy reorganizing and reworking the fundamental design of its chips. AMD claims that it currently controls a fifth of the market for chips used to power personal computers with Intel controlling the rest.
Whether the new investment will provide any long time relief to AMD is yet to be seen. According to analysts, though AMD’s sale of personal computers is strong but its expenses continue to be high.
Source:New York Times
Image:cnet
