Advanced Micro Devices (AMD) says Mubadala Development has invested $622 million in the company to help beef up its growth strategy.
The Abu Dhabi based investment firm will take an 8% stake in AMD, receiving 49 million new shares priced at $12.70. AMD will pay Mubadala $14.6 million for expenses and use the remaining $608 million for its growth strategy and general operations.
Mubadala says it is a non-controlling minority stake and that it will not add a board member to represent the group.
The move comes as speculation swirls around a possible management shakeup and the potential for a new manufacturing approach. Some observers say AMD is exploring the sale of some of its chipmaking facilities in an effort to go so-called fab lite, meaning less emphasis on manufacturing and more of a push toward development of new chips.
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