US approves AMD joint venture with Abu Dhabi

The Committee on Foreign Investment in the United States (CFIUS) has cleared a joint venture between Advanced Micro Devices and the Advanced Technology Investment Company, owned by the government of Abu Dhabi.

The Committee, which reviews deals for national security reasons, issued a clearance for the venture known as The Foundry Company, which was confirmed by AMD yesterday.

The new company will be headquartered in Silicon Valley, with its R&D and manufacturing teams in New York, Dresden, and Texas.

As part of the agreement, ATIC will own the controlling interest with a 55.6% share in the venture.

Mubadala Development Co., another Abu Dhabi investment company, is increasing its investment in AMD to 19.3% from its present 8.1% by purchasing shares and warrants worth $314 million. This increase in investment will not be subject to review by the CFIUS.