AMD has announced a splitting off of it’s manufacturing to Advanced Technology Investment Company of Abu Dhabi.

http://blogs.zdnet.com/BTL/?p=10328&tag=nl.e539

While that is good for their books (they have been loosing the battle against Intel for some time now) and shareholders…what does it mean for the many people out there with AMD products and those who prefer AMD over Intel?

According to AMD, this continues allowing AMD to do what it does best – design award winning processors. The manufacturing (of which they will retain 44% ownership) will now be run by ATIC of Abu Dhabi.

AMD has always emphasized the importance of owning their own fabrication process but according to the report, this deal is structured where AMD would retain many of the traditional benefits of fabs, since part of Foundry will be dedicated to serving AMD and will remain in close communication with the company’s engineers.”

The good news is this split will allow AMD to create a new plant in Malta, NY giving them three fab plants (Dresden overseas and Albany in the US) and IBM has, with this announcement, agreed to a technology pact with AMD to 2015.

So…how does it affect you?

As an existing owner it should have no effect whatsoever and for the AMD fans of the world, this will allow AMD to continue (part of thie split is the new – as yet to be named – company will take on 1.2 billion of AMD’s debt) as a company.

In this time of financial crisis, AMD has made a very smart financial move to keep the doors open and the fab plants manufaturing.

Hopefully this will be the boost needed to make AMD a real innovator in the processor market once again.