Due to the losses it has experienced in the past six quarters Advanced Micro Devices (AMD) is making a drastic move, the last resort in order for it to keep up with its competitor, Intel. AMD is now breaking into two companies. One will be dedicated to designing the chips while the other one will be involved in the manufacturing. Two firms from Abu Dhabi will also be investing in AMD’s two new companies. The Abu Dhabi firms will give $6 billion and will help out in building a new chip factory in Albany, New York as well as in refurbishing another in Germany.

The factory that will be build in New York has been named Foundry Company, but that’s only for the time being. This factory will be the one to manufacture AMD chips and all the while it will also produce chips for other companies. 44.4 percent of this new company will be owned by AMD while the rest will be controlled by Advanced Technology Investment, one of the investment firms from Abu Dhabi.

AMD’s chief executive, Dirk Meyer, is positive about this step that they have taken. By being relieved of the financial burden he said that their company will become stronger both in the near and long term.