AMD and Nantong Fujitsu Microelectronics Co., Ltd. Close on Semiconductor Assembly and Test Joint Venture

SUNNYVALE, CA -- (Marketwired) -- 04/29/16 -- AMD (NASDAQ: AMD)

  • NFME and AMD Close $436M Transaction and Launch New JV to Expand the Customer Base for AMD's World-Class Suzhou and Penang Assembly and Test Facilities

  • NFME pays $371M for 85% JV ownership

AMD (NASDAQ: AMD) and Nantong Fujitsu Microelectronics Co., Ltd. (NFME) (SZSE: TFWD) today announced that they have closed the transaction to create a joint venture offering differentiated assembly, test, mark, and pack (ATMP) capabilities to both AMD and a broader range of customers.

"Combining AMD's world-class teams and facilities in Penang and Suzhou with NFME's expertise in the growing assembly and test market will create a new outsource assembly and test leader with the scale and capabilities to help us deliver our upcoming high-performance technologies and products that can re-shape the industry," said AMD President and CEO Dr. Lisa Su. "The creation of this joint venture marks another step in building a more focused AMD as we complete our transition to a fabless business model, enhance our supply chain operations, and further strengthen our financial position."

"AMD is a world class semiconductor provider with advanced flip chip packaging and test technologies. These capabilities are complementary with NFME's advanced packaging and test technologies, such as its flip chip and bump technology for the computing, communication and consumer market. The establishment of this joint venture will elevate the competitiveness of NFME's flip chip packaging and test technologies to a world-class level. With this joint venture, NFME's advanced packaging and test capabilities will account for 70 percent of its total revenue, leading the entire industry and ranking among the top packaging and test companies in the world," said Chairman of Nantong Fujitsu Mr. Shi Mingda.

Key highlights of the deal include:

  • NFME's affiliates have purchased an 85 percent share of AMD's Penang, Malaysia and Suzhou, China ATMP operations and act as controlling partner for the new joint venture business.
  • AMD received from NFME approximately $371 million, excluding purchase price adjustments, with net cash proceeds of approximately $320 million after payment of taxes and other customary expenses. AMD retains a 15 percent ownership of the Penang and Suzhou operations.
  • The transaction is expected to be cost neutral to AMD's P&L while significantly reducing AMD's capital expenditures. AMD will account for its 15 percent ownership stake in the joint venture and its results of operations under the equity method of accounting.
  • Approximately 1,700 AMD employees transitioned to the joint venture.

J.P. Morgan Securities LLC served as exclusive financial advisor to AMD, and provided a fairness opinion to the board of directors of AMD.

Supporting Resources

About AMD
For more than 45 years AMD has driven innovation in high-performance computing, graphics, and visualization technologies -- the building blocks for gaming, immersive platforms, and the datacenter. Hundreds of millions of consumers, leading Fortune 500 businesses, and cutting-edge scientific research facilities around the world rely on AMD technology daily to improve how they live, work, and play. AMD employees around the world are focused on building great products that push the boundaries of what is possible. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, Facebook and Twitter pages.

About Nantong Fujitsu Microelectronics
Established in 1997 and headquartered in Nantong City of China's Jiangsu province, Nantong Fujitsu Microelectronics Co., Ltd. (NFME) stands at the forefront of industry science and technology development as one of the 3 largest IC assembly and testing companies in China. NFME services most of the top tier semiconductor manufacturers in the world. Current company offerings include advanced assembly technologies, such as WLCSP, FC, BGA, BUMPING, MEMS, traditional assembly technologies, such as QFN, QFP, TSSOP and automotive electronics assembly technologies. Besides, NFME has the capability of testing, including Wafer Probe, Final Test, and System Level Test. NFME is the first company, which realizes the turn-key of mass production of 12 inch 28 nm high-end mobile phone processor chip in China. The company is listed on the Shenzhen Stock Exchange under the Ticker name "TFWD" or "002156.SZ". Learn more at: http://www.fujitsu-nt.com/.

Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. ("AMD" or the "Company"), including AMD's expected benefits and synergies from the transaction and the joint ventures between AMD and NFME, including the JVs becoming an assembly and test leader, that the JVs have the scale and capabilities to help AMD deliver its upcoming high-performance technologies and products that can re-shape the industry; AMD's ability to successfully transition to a fabless business model, enhance AMD's supply chain operations and further strengthen AMD's financial position; that the transaction is expected to be cost neutral to AMD's P&L while significantly reducing AMD's capital expenditures; and that AMD will account for the JVs under the equity method of accounting, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. 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Source: Advanced Micro Devices