News: AMD & NFME have formed a joint venture to expand assets and capabilities.
AMD intends to divest 85% of its assembly and testing operations in the cities of Suzhou, China and Penang, Malaysia to China’s Nantong Fujitsu Microelectronics (NFME) for $320m in cash.
The parties have formed a joint venture agreement which will see the integration of AMD’s high-volume assembly, test, mark, and pack (ATMP) capacities with the Chinese firm’s outsourced semiconductor assembly and test (OSAT) expertise.
The new entity will have 5,800 employees operating across 5 facilities servicing an expanded range of customers.
AMD will be contributing approximately 1,700 employees to the joint venture, it said.
The transaction is expected to be closed in the first half of 2016.
Earlier in the month, the firm announced a cut of 5% to its global workforce, which was recorded at 9,700, according to the company annual report in February.
AMD also announced a net loss of $197m as it revealed its revenues for the third quarter of 2015.