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Globalfoundries trims capital spending

22 July 2009 | By Mark Osborne | News > Fab Management

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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.

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