AMD gets big boost with Chinese joint venture chip deal

Maybe Advanced Micro Devices should order Chinese more often?

The Sunnyvale-based chip maker, which has struggled in recent years to expand its business and the faith of its investors, on Friday saw its shares surge more than 36 percent, to $3.65, and reach their highest point in 19 months. The impetus for AMD’s gains was a new joint venture to produce chips in China with Tianjin Haigung Advanced Technology Investment Company.

AMD’s new partnership calls for the company to license its x86 chip technology to Tianjin for use in the development of servers that will be only be sold in China. AMD expects to take in almost $300 million in licensing fees, in addition to any royalties from the joint-venture’s chip sales.

The move is one of the latest by AMD Chief Executive Lisa Su to look for ways to bring in revenue from the company’s intellectual property. The Chinese joint venture was announced late Thursday as AMD also delivered first-quarter results that turned out to be better than expected. AMD reported a loss, excluding one-time items, of 12 cents a share, on revenue of $832 million, which edged past analysts’ forecasts of a loss of 13 cents a share on $818 million in sales. AMD also said its revenue for the year will increase from a year. Analysts had expected AMD’s sales to drop 4 percent on a year-over-year basis.

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Photo: AMD headquarters in Sunnyvale. (Bay Area News Group archives)


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  • Bopper

    New GPUs (Polaris), first truly new CPU in years (Zen), next gen gaming console wins, ownership of the VR processor space (> 80%), licensing agreement with China and announcement of profitability by end of year. Looks like AMD is truly turning the ship around and doing it without a resurgence of the PC market. Hats off to CEO Lisa Su.

  • benT

    Yincha on Sundays is ALWAYS A GOOD OPTION / hangover cure…………