AMD to let its magic tortoise go

Here at TechEye, we’ve heard whisperings that AMD is planning to deconsolidate fab spin-off GlobalFoundries from its books imminently and is also planning to reduce its ownership share in the firm in the very near future.

It’s widely expected that AMD will discuss the deconsolidation efforts in its upcoming earnings call later this week, which, unlike Intel’s, are not likely to show an 800 plus per cent profit increase.

Indeed, Wall Street has long been anxious for the littler chipper to get Glofo off its books and make its balance sheet more bright and breezy as a result.

Not that Glofo isn’t doing well, but a $4.6 billion fab project on one’s budget tends to look a little top heavy, not to mention the money being pumped into the Dresden fab to keep it all up to date and bleeding edge.

Of course, another reason AMD may be thinking of scaling back its share in GF is that it’s highly unlikely the chipmaker has the cash to match ATIC’s capital spending, what with AMD not having either a kingdom nor an oil-field to drain resources from.

But the move will probably be a good one for GlobalFoundries, which should be able to assert rather a lot more independence in the market and chase other customers more aggressively as AMD moves from its role of partner to more of a punter and minority shareholder.