Abu Dhabi investment prompted by local expansion says AMD CEO

Mubadala's investment of $622m followed AMD's regional expansion, says Ruiz on visit to the region

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By  Mark Sutton Published  November 27, 2007

Hector Ruiz, chairman and CEO of AMD said today that the recent investment by Abu Dhabi's Mubadala Development Company in AMD, came about following the processor manufacturer's recent expansion in the region.

Ruiz, who is on a short visit to the region, told itp.net that while the Mubadala investment is strategically important to the company, the company was already increasing its focus on the Middle East, which led to discussions with Mubadala.

"The Mubadala investment is going to help us be able to continue making the R&D investments that we believe are necessary. Separate from that, from before Mubadala showed an interest, we were on path to make significant investments in this region, because of its location, its attitude toward trade and business is very open and progressive, and also it is very close to the regions of the world where we think affordable technology can have a big impact," Ruiz said.

"We set up an office here, put a pretty good team in place, and in doing so we became acquainted with some organizations in the region, one of them was Mubadala. As they became familiar with our company, they expressed an interest in wanting to invest - we consider ourselves very fortunate to have a partner of their caliber wanting to invest in our company," Ruiz added.

AMD will use the investment to continue to build its R&D in new technologies, such as its recently-launched integrated computing platform, Spider, Ruiz said, although the company does not have any specific plans for R&D or manufacturing in the region at the moment.

Ruiz also said he did not believe that AMD's share price, which has dropped by over $2 per share since 16th November, when the Mubadala investment was announced, reflected the long term value of the company.

"I believe we are suffering from being a volatile stock to begin with, in an environment where everybody is nervous. I personally think it is an overreaction in the market," he said.

"Mubadala are very long term oriented, they did not invest with the idea that in two weeks they are going to make a lot of money. We are disappointed like everybody else that the near term gyrations in the market are so pronounced, but the long term vision has not changed. We are very excited about what AMD is doing, and i believe our investors believe that too," he added.

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