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Advanced Micro Devices is preparing a to spin off its manufacturing operations to a joint venture in an attempt to cut costs, according to an online report from The Wall Street Journal.
The plan will see AMD's factories taken over by the venture, ownership of which will be split between AMD and other investors including some associated with the government of Abu Dhabi, the newspaper said quoting "people familiar with the matter." The new venture will not only make chips for AMD but also other companies, according to the report.
AMD could not immediately be reached for comment.
Shortly before the newspaper report was published the company informed reporters and analysts that it plans a "significant corporate announcement" at 8 a.m. EDT (12 p.m. GMT) on Tuesday. AMD President and CEO Dirk Meyer will lead the conference call.
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