AMD Selling Austin Texas Facility To Raise Cash

It’s never a good sign when a company is trying to raise money using strategies that don’t include selling its products for a profit, but that’s where AMD is these days. The chipmaker is reportedly looking to sell off its Austin, Texas facility to generate cash; the plan is apparently to lease the facility back from the new owner, whoever that might be.

AMD told Reuters that it hopes to get between $150 million and $200 million for the 58-acre property, closing a deal sometime before the end of Q2 2013. This isn’t the first time AMD has employed this strategy; the company has done the sell-and-lease-back dance with facilities in Toronto and California.

AMD Austin
AMD's Austin campus

Although this is better news that the earlier rumor that AMD itself was up for sale, it’s not exactly what one would call “good news”, and it’s the latest in a string of disappointing headlines for the company, including layoffs, financial losses in the third quarter, and expected losses in Q4.

If AMD eventually goes under, it wouldn't just be terrible for the companies' employees and shareholders--it would be awful for the industry. Competition is healthy, and there are far too few players in the processor market to lose a giant like AMD.
Via:  Reuters
Tags:  AMD, Layoffs, Misc, Austin
Comments
xjohndoe001x 2 years ago

I think that Nvidia can get the Bulldozer/Piledriver architecture to work and give Intel a run for the enthusiast desktop CPU money. Nvidia should buy AMD

Dorkstar 2 years ago

Then there would be virtually no competition from nvidia, and we'd be paying more for already expensive products.  AMD needs to stick around in the CPU/GPU market to keep intel and nvidia both down in price, and help continue the trend of improvement.

sackyhack 2 years ago

This is sad. I mean, I'm all interested in hardware news and all, but I'm experiencing this sort of thing directly. I work for the R&D department in our company, and the division just got disbanded for "business" reasons. I'm fortunate and will be moved to a different part of the plant since my contract is a little different, but many of my friends are losing their jobs. Some of them are in their 50s and suddenly have to start looking for new jobs. I hope the best for those AMD employees.

sevags 2 years ago

I just really wish AMD had never bought ATI in the first place. Now of they go out of business both the CPU and GPU markets will have less competition and well the APU market really only has 2 competitors on the desktop...

AMD has made some of the best CPUs in history and helped changed the landscape from 64bit architecture to helping the industry move away from MHz and high thermals. This isn't the case today and AMD IMO doesn't have a single worthwhile product unless you're on a budget and buying a premise box from a retailer. I haven't bought an amd product since 2006 but we all need them to stick around. And do better lol

OSunday one year ago

@sevags how is that the case today... the AMD 7970 outperforms Nvidias highest end GPU, along with most other mid range to high end graphics card aside from their flagship products. AMD's competition with Intel processors is a bit of a different case, but the price to performance ratio even for those not on a budget but looking to spend a decent mount is on par as well. Intel's top of the line (Intel has $1000 CPU's while AMD doesn't) solidly beat out AMD's processors, just like AMD's GPU's beat out Nvidia at the top.

I'd say AMD definitely has plenty of more than solid products and I'm sure more than a few people would agree.

And it's a shame to see them reporting losses and not doing to well, I don't understand why it's the case but I hope for the best of them for the sake of innovation and development for technology as a whole and for consumers wallets as well.

thunderdan602 one year ago

I agree with the author. Competition always benefits consumer and helps drive innovation.

kidbest100 one year ago

Same Dan, But I think that AMD needs to do whatever it possibly can to get itself back in the books. I cannot explain how happy I would be if they had another Athlon type breakthrough with the next FX line. It would sure be awesome! But, we all know, the chances of that are slim to none.

altereDad one year ago

 

The company seems to be making an attempt at keeping them in the thick of things. Sometimes less than strategic is the only way to move forward. They have their faults, and so does every other hardware manufacturer. They may be sitting on certain R&D that will be innovative, but no company wants to release something that can tarnish the image further.

Perhaps they'll do something much like OCZ did with their in-house  R&D to help bring a stronger image of themselves to the forefront. And with their current product line up they can still at least compete.

 

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