The chipmaker is hoping splitting itself up is what it needs to compete with Intel. While the original announcement of the breakup happened in October, the actual breakup occurred today. The larger of the two would still be AMD, which would retain about 14,000 employees, and would be charged with design and marketing.

Manufacturing of the chips would be the responsibity of the temporarily named Foundry Co. 3,000 of AMD’s employees would transition there. AMD would have a 50 percent stake in the new company. Most importantly, the company would no longer have any debt.

That has been assumed by the Abu Dhabi government in return for a large stake in Foundry. Intel should be a bit worried: now debtless, AMD will have a much easier time in taking the chipmaker head-on.

 
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