Executive Summary

AMD and Advanced Technology Investment Company of Abu Dhabi to Create Leading-Edge Semiconductor Manufacturing Company

Mubadala Development Company intends to increase investment in financially-stronger AMD, which is simultaneously unlocking the value of its manufacturing assets.
On Oct. 7, 2008, AMD and the Advanced Technology Investment Company announced the intention to create a new global enterprise, The Foundry Company, to address the growing global demand for independent, leading-edge semiconductor manufacturing. There is a strong shift to foundries occurring – particularly to foundries with the capacity to produce devices using leading-edge process technologies. With The Foundry Company, AMD will be able to unlock the value of its world-class manufacturing capability – by making it available to a growing community of fabless semiconductor companies. more

The Foundry Company: A U.S. Headquartered Global Enterprise
The Foundry Company will begin with key strengths needed to build a successful leading-edge manufacturing company: a history of manufacturing excellence through AMD, committed capital, talented workforce and intellectual capital, and a strong, long-term technology partnership with IBM.

To scale capacity, The Foundry Company intends to proceed with a planned capacity expansion in Dresden, Germany. In addition, the company plans, subject to the transfer of previously approved New York State incentives, to begin construction on a new state-of-the-art facility in Saratoga County, New York, creating more than 1,465 highly-skilled, advanced manufacturing jobs and stimulating the creation of thousands more local jobs. Once operational, the New York facility will be the only independently-managed leading-edge semiconductor manufacturing foundry in the United States.

AMD Delivers on Asset Smart to Become Financially Stronger and More Focused on Design and Development

With The Foundry Company, AMD will unlock the value of its manufacturing excellence to emerge financially stronger and more focused on the design and development of the next generation of innovation based on the Fusion of computing and graphics processing. AMD is the only company in the world with a proven track-record of innovation in both x86 CPU and graphics technologies. Upon closing of this transaction, AMD will be able to direct the company’s intellectual energy to helping customers create differentiation and value.


Additional Information and Where to Find It

AMD will file a proxy statement pursuant to which AMD’s board of directors will solicit proxies in connection with seeking AMD stockholder approval of the issuance of AMD shares and warrants pursuant to the Master Transaction Agreement with the Securities and Exchange Commission (the “SEC”). Investors and security holders are urged to read the proxy statement when it becomes available and other relevant documents filed with the SEC because they will contain important information. Security holders may obtain a free copy of the proxy statement, when AMD files it with the SEC in the coming weeks, and other documents filed by AMD with the SEC at the SEC’s web site at http://www.sec.gov. The proxy statement and other documents may also be obtained free of charge by contacting AMD Investor Relations at investor.relations@amd.com or by telephone: (408) 749-4000. Certain executive officers and directors of AMD have interests in the transaction that may differ from the interests of AMD stockholders generally. These interests will be described in the proxy statement when AMD files it with the SEC in the coming weeks.

What Industry Analysts Are Saying

AMD Shows US the Way with Asset Smart
Creativity Applied
10/07/2008 by Rob Enderle
"Part of the problem with massive economic problems is they can lead to political grid lock. Whether we are talking a country or a company you put a lot of people in fear for their jobs and homes and that is all they can see their creativity tends to go out the window. The end result is a lot of complaining and finding people to blame and comparatively little creativity and effort focused on actually fixing the problem. The end result, for a company anyway, is failure. AMD just took the unusual and laudable path of creatively thinking up a way to partner with others and eliminate the problem perhaps so well that it may have given them a competitive advantage." More

A Meditation on Value
Shed Full of Wood and AMD's Houdini Maneuver
10/7/2008 By Roger L. Kay
"By tying together its own process technology development assets, its world-class manufacturing in Dresden, and its technology development partnership with IBM, AMD is doing itself — and the industry — a big favor. AMD gets to lower its fixed costs, making it profitable at a lower level of revenue, and it can still participate in leading- edge technology development." More

What They're Saying in New York

Senator Clinton Joins Governor in Welcoming AMD Announcement to Build New Cutting-Edge Facility in Saratoga County

Semiconductor Chip Plant To Bring Thousands Of New, Well-Paying Jobs To The Capital Region
Albany, NY - Senator Hillary Rodham Clinton today joined Governor David A. Paterson, Advanced Micro Devices (AMD) executives, and other elected officials and area leaders, to welcome AMD's announcement of their intent to build a new leading edge semiconductor foundry manufacturing facility in Saratoga County. Senator Clinton has been a strong advocate for bringing AMD to the Luther Forest Technology Campus (LFTC), meeting with AMD Executive Chairman Hector Ruiz in January 2007 and again in July 2008 (see - http://clinton.senate.gov/news/statements/details.cfm?id=301176&&) to tout the many resources that make the Capital region the perfect location for their new facility. During their discussions, Senator Clinton cited Upstate New York's unmatched educated and highly skilled workforce, and the economic potential of Albany's nanotech cluster that enhances the company's opportunities for growth and development. more

AMD's proposed semiconductor foundry manufacturing facility is projected to create thousands of well-paying jobs for the region, and when completed in 2012, the manufacturing facility will be the most technologically advanced in the world.

"AMD's announcement is great news for the Capital Region and for all of New York, and a testament to what our State offers to cutting-edge companies looking for a skilled and motivated workforce," said Senator Clinton. "Worldwide semiconductor innovation is centered in upstate New York, which already hosts IBM, Sematech, the Albany Nanotechnology Center and many more leading companies, R&D centers and universities. AMD's announcement is an important part of a strategy to build a cluster of competitiveness that is key to the future growth and creation of jobs in New York. I have seen firsthand AMD's commitment to quality, and I look forward to watching them build a strong and successful partnership with the community and the region as they move forward with this venture."

"In a time of fiscal crisis, it is critical that New York State position itself as a leader in technologies of the 21st Century. This historic investment helps to achieve that goal," said Governor Paterson. "This merger will lead to the creation of one of the most advanced semiconductor manufacturing facilities in the world, and one of the largest private sector industrial investments in New York State history. I want to thank Senator Clinton for her leadership to bring this project to fruition for the people of New York."

"We're excited about this opportunity to make New York a global center for advanced semiconductor manufacturing. We appreciate Senator Clinton's vision and strong support for this project and look forward to continuing to work with her and other New York leaders to expand New York's technology economy," said Hector Ruiz, Executive Chairman, AMD.

According to AMD, the region's highly skilled and educated local workforce is a major factor in why Luther Forest was as the ideal site for the new semiconductor foundry manufacturing facility. The project is estimated to create more than 1,400 new semiconductor manufacturing jobs once full scale production is achieved, and create an additional 5,000 indirect jobs in the region. Construction of the facility is expected to support about 1,600 jobs.

Governor Paterson Announces Advanced Micro Devices and Advanced Technology Investment Company to Make Major Investment in New York State

Action by Governor Paterson Helps Position New York as a World Leader in Advanced Micro-Technology

The Foundry Company Will Invest $4.6 Billion, Creating 1,465 Permanent High Tech Jobs

Luther Forest is One of the Largest Private Sector Investments in New York State History more

Governor David A. Paterson today announced that Advanced Micro Devices (AMD) and its new investment partner, Advanced Technology Investment Company (ATIC), have taken a crucial next step in developing a new computer chip production facility at the Luther Forest Technology Campus in Saratoga County. AMD and its new investment partner have created a new global company, now known as “The Foundry Company,” which will own and operate the new computer chip production facility. This action clears the way for construction of one of the most advanced semiconductor manufacturing facilities in the world, and one of the largest private sector industrial investments in New York State history.

Governor Paterson instructed his staff to work with senior executives of The Foundry Company to review the details of the new company, which will own and operate the Luther Forest plant. While The Foundry Company has now increased their investment and project size at the Luther Forest site, New York’s capital investment project towards this project will not change. The Empire State Development Corporation, the State’s economic development agency, must approve the new corporate entity, a process which begins today.

“In a time of fiscal crisis, it is critical that New York State position itself as a leader in technologies of the 21st Century. This historic investment helps to achieve that goal,” said Governor Paterson. “Governor George Pataki, Senate Majority Leader Dean Skelos, Assembly Speaker Sheldon Silver and Senator Joe Bruno deserve credit for putting New York on the path as a leader in this industry. AMD Chairman Hector Ruiz and I first sat down to discuss the AMD progress in June of this year and I would like to thank AMD and ATIC for making this commitment to New York State.”

This announcement allows The Foundry Company to break ground on a 180,000 square foot chip fabrication plant, which is larger than what was originally envisioned. The plant will produce a 22 nanometer chip, which is two generations ahead of the 45 nanometer chip which is the current cutting edge chip. The Foundry Company will be making a $4.6 billion investment in Luther Forest for one plant, which will employ more than 1,465 people, up by 250 from original estimates. The construction will begin in mid 2009 and create 1,600 construction jobs with production starting in 2012. The development of the site will allow for the potential building of up to three additional chip fabrication plants.

U.S. Senator Charles E. Schumer said: “At a time of general bleak economic news, today’s announcement is great news for the Capital Region and its economic future. Bringing AMD to New York is something we worked on long and hard and I am glad to see it bear fruit. I’ve worked closely with Dr. Ruiz over the last few years to make sure AMD has everything they need to bring this plant to the Capital Region and I am glad he kept his word to do just that. This investment will solidify the Capital Region once and for all as one of the premier high-tech, nanotechnology centers of the world and bring thousands of jobs to region. This is exactly what the doctor ordered for the Capital Region - creating jobs, securing our technology leadership and growing our economy.”

U.S. Senator Hillary Rodham Clinton said: “This is a welcome announcement for New York that will contribute to the continued economic growth and vitality of our State. The investment by AMD will not only create thousands of good jobs for the Capital region, it will continue to strengthen New York’s reputation as a world leader in providing an environment where innovation and cutting edge technology can thrive. I am proud to have been able to be a part of the effort to help bring AMD to Saratoga County, and I thank Governor Paterson for his leadership and commitment to this venture.”

Congresswoman Kirsten Gillibrand said: “Today’s announcement is a major step forward in our work to make the Tech Valley Region a global center of excellence for nanotechnology and advanced technology manufacturing. Not only will the Fab 4x project inject billions of dollars and thousands of jobs into our economy, it will generate new research and development opportunities for our universities, attract other companies to locate in our communities, and help our existing small and medium sized businesses grow and prosper.”

Senate Majority Leader Dean G. Skelos said: “The commitment of AMD to build a computer chip facility in Saratoga County is tremendous news because it will be the largest economic investment in the history of the state and will result in the creation of thousands of new jobs. The AMD project was a priority for the Senate Republican Majority because of the positive impact it will have, not only in the Capital Region, but for the entire Upstate economy. We understood that New York had to be more competitive with the rest of the country and the world to secure a major project such as this and we help firm in our commitment to make it happen. Much of the credit for this deal goes to former Senate Majority Leader Joe Bruno who had the vision, laid the groundwork, and did the hard work to make this historic job-creation project a reality.”

Assembly Speaker Sheldon Silver said: “I congratulate and commend AMD for honoring its commitment to the State of New York and to this region. Even in difficult economic times, we must invest in our infrastructure and in our human capital in order to fuel long-term job growth and assure the future prosperity of our state. Though we face serious challenges and need to make tough decisions, we cannot neglect our obligation to rebuild and revitalize our Upstate economy. I believe that what we have accomplished here in Tech Valley, can be replicated throughout this state.”

This announcement builds off an agreement reached between New York State and AMD in June, 2006. In recognition of this agreement, New York State will provide a $650 million capital grant to offset the construction and research and development activities for the Luther Forest project. The project is also eligible for benefits through the Empire Zone program, which are currently estimated to total nearly $600 million over a 14 year period. AMD has an option, without obligation, until July 31, 2009 to commence construction of the facility.

NY Senator Charles Schumer Statement on AMD Committing to Build Computer Chip Factory in Saratoga County

"At a time of general bleak economic news, this is great news about the Capital Region and its economic future. This is something we worked on long and hard and I am glad to see it bear fruit. This investment will establish the Capital Region once and for all as one of the premier high-tech, nanotechnology centers of the world."
Charles Schumer
U.S. Senator
D-New York

Rep. Gillibrand Statement on AMD Plan to Spin Off its Manufacturing Operations

"Today's announcement is a major step forward in our work to make the Tech Valley Region a global center of excellence for nanotechnology and advanced technology manufacturing. Not only will the Fab 4x project inject billions of dollars and thousands of jobs into our economy, it will generate new research and development opportunities for our universities, attract other companies to locate in our communities, and help our existing small and medium sized businesses grow and prosper."
Kirsten Gillibrand
U.S. Congresswoman
New York's 20th Congressional District

The Commitment of AMD to Build a Computer Chip Facility in Saratoga County is Tremendous News because it will be the Largest Economic Investment in the History of the State and will Result in the Creation of Thousands of New Jobs

Senate Majority Leader Dean G. Skelos said: “The commitment of AMD to build a computer chip facility in Saratoga County is tremendous news because it will be the largest economic investment in the history of the state and will result in the creation of thousands of new jobs. The AMD project was a priority for the Senate Republican Majority because of the positive impact it will have, not only in the Capital Region, but for the entire Upstate economy. We understood that New York had to be more competitive with the rest of the country and the world to secure a major project such as this and we help firm in our commitment to make it happen. Much of the credit for this deal goes to former Senate Majority Leader Joe Bruno who had the vision, laid the groundwork, and did the hard work to make this historic job-creation project a reality.”
Dean G. Skelos
New York State Senate Majority Leader

I Congratulate and Commend AMD for Honoring its Commitment to the State of New York and to this Region

Assembly Speaker Sheldon Silver said: “I congratulate and commend AMD for honoring its commitment to the State of New York and to this region. Even in difficult economic times, we must invest in our infrastructure and in our human capital in order to fuel long-term job growth and assure the future prosperity of our state. Though we face serious challenges and need to make tough decisions, we cannot neglect our obligation to rebuild and revitalize our Upstate economy. I believe that what we have accomplished here in Tech Valley, can be replicated throughout this state.”
Sheldon Silver
New York State Assembly Speaker

The Chamber of Southern Saratoga County Welcomes the Foundry Company - A Partnership with AMD

CLIFTON PARK, N.Y. (October 7, 2008) - "The Chamber of Southern Saratoga County joins in welcoming AMD and the Foundry Company to southern Saratoga County. The announcement today is a testament to the process of regional cooperation and developing collaborative partnerships within business, education and governments," said Peter Aust, president & CEO of the Chamber. more

"With today's much anticipated news, the region will be blessed with sustained economic growth that will attract and retain other leading businesses who in turn will create thousands of new jobs, develop innovative technologies and stem the exodus of our talented and educated young people. As witnessed in other communities who host leading technology companies like AMD throughout the world, we anticipate a strong and vibrant future ahead," said Aust.

"This exciting day is monumental. The commitment of AMD to create a new entity for their sustained growth and industry leadership demonstrates their unwavering desire to establish their flagship manufacturing facility in our region. This announcement is the result of tireless hard work and contributions of hundreds of individuals in our region. We extend our warmest welcome and look forward to working with them to enhance our region's quality of life," said Aust.

The Chamber of Southern Saratoga County is a membership-based business organization that exists to promote and serve its members. The mission is to work for members, customers and stakeholders to create a successful business environment, provide resources and be a vigorous advocate for the business community, enhancing the quality of life in Southern Saratoga County. For further information, visit www.southernsaratoga.org.

Peter Aust
President & CEO of the Chamber of Southern Saratoga County

Quote From IBM

"We welcome The Foundry Company into the IBM alliance as part of our existing joint-development agreement with AMD, and are pleased to see the company investing in New York, said Dr. John E. Kelly III, senior vice president and director of Research, IBM. "The Foundry Company's membership in the alliance brings new intellectual capital to our open, collaborative effort and continues to build on the momentum the alliance has established in semiconductor technologies over the last six years." (IBM)

What Others Are Saying

Semiconductor Industry Association Applauds Announcement of U.S. Foundry

"The new foundry will help meet the industry's growing demand for state of the art manufacturing services," said SIA President George Scalise. The New York facility will be a first and will provide a much-needed domestic source for leading-edge foundry services. We also commend the State of New York and Albany Nanotech for their tireless efforts to attract investment in semiconductor research and manufacturing facilities," Scalise concluded. More

About ATIC

The Advanced Technology Investment Company (ATIC) was created in 2008. A technology investment company wholly owned by the Emirate of Abu Dhabi, ATIC is focused on making significant investments in the advanced technology sector, both locally and internationally. Its mandate is to generate returns that deliver long-term benefits to the Emirate of Abu Dhabi.

ATIC seeks to leverage the unique advantages it enjoys as an investor from the Emirate of Abu Dhabi to identify and realize long-term investment opportunities in the highly competitive and capital-intensive advanced technology sector. These advantages include significant and reliable capital, a patient investment philosophy, and a subsequently long-term investment horizon.

About Mubadala

Mubadala logo Mubadala Development Company (Mubadala) develops and manages an extensive and economically diverse portfolio of commercial initiatives either independently or in partnership with leading international organizations. Mubadala’s commercial strategy is fundamentally built on long term capital intensive investments that deliver strong financial returns.

The company manages a multi-billion dollar portfolio of local, regional, and international investments, projects and initiatives. Through its investment and development projects, Mubadala is both a catalyst for, and a reflection of, the drive for economic diversification of the Emirate of Abu Dhabi. Its impact is evident domestically and internationally in sectors such as energy, aerospace, real estate, healthcare, technology, infrastructure, and services.

Images

Dirk Meyer and Waleed Al Mokarrab Dirk Meyer and Khaldoon Al Mubarak Waleed Al Mokarrab, Doug Grose, Hector Ruiz, Dirk Meyer, and Khaldoon Al Mubarak
 
One AMD Place located in Sunnyvale, CA. Fab 36 located in Dresden, Germany. Artist rendering of proposed Fab 4x in New York State.

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