Online information source for semiconductor professionals
Globalfoundries trims capital spending
Popular articles
Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008
Samsung and Micron gain most market share in DRAM crisis - 17 February 2009
TSMC hosts 2008 Green Forum on ‘green’ factories - 31 October 2008
Micron moving fast on Hynix in Q208 NAND flash rankings, says iSuppli - 19 August 2008
Numonyx to close California Technology Center - 12 August 2008
Although Globalfoundries is expected to announce its first foundry customer after AMD in the next month, demand for AMD’s microprocessors has remained flat for the last two quarters and the migration to 45nm devices slowed, resulting in a reduction of capital expenditure recquired for 2009. Robert Rivet, AMD’s CFO said in a conference call that CapEx for subsidiary Globalfoundries would be trimmed to US690 million, down from previous guidance of approximately US$760 million.
CapEx for AMD, the fabless company, would be about $100 million, down from its previous plan of US$150 million for the year.
Globalfoundries is also expected to raise further funds as its cash position has fallen below US$1 billion, Rivet noted in the call. The US$1 billion cash holding was an agreed set figure for the spin-off with new majority share holders.