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UPDATE 1-Chipmaker AMD to form joint venture with China's NFME
October 15, 2015 / 9:13 PM / 2 years ago

UPDATE 1-Chipmaker AMD to form joint venture with China's NFME

(Adds details on joint venture, details on earnings, shares)

Oct 15 (Reuters) - Struggling chipmaker Advanced Micro Devices Inc said on Thursday it would form a joint venture with China’s Nantong Fujitsu Microelectronics Co Ltd (NFME) for assembly and testing operations.

Shares of the company, which reported its fifth straight quarterly fall in revenue as demand declines for its mainstay PC processors, rose slightly in after-market trading.

NFME will purchase an 85 percent share of AMD’s Penang, Malaysia and Suzhou, China facilities, and AMD will receive about $371 million as part of the deal.

There are no planned workforce reductions at the facilities, AMD said.

AMD earlier this month said it would cut about 500 jobs, or 5 percent of its global workforce, to rein in costs.

The company posted a net loss of $197 million, or 25 cents per share, in the third quarter ended Sept. 26, compared with net income of $17 million, or 2 cents per share, a year earlier.

On an adjusted basis, AMD posted a loss of 17 cents per share.

Revenue fell 25.8 percent to $1.06 billion.

Analysts on average had expected a loss of 12 cents per share and revenue of $995.9 million, according to Thomson Reuters I/B/E/S.

AMD’s shares closed up 1 percent at $1.97 on the Nasdaq.

Reporting by Sai Sachin R and Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila

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