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Fed OKs Foundry investment

Chipmaker AMD cleared another hurdle on the long course to building a $4.6 billion factory in the Town of Malta, with the recent federal government green light for major investments by two foreign companies.

The Committee on Foreign Investments in the United States (CFIUS) approved billions in investments from the Advanced Technology Investment Company (ATIC) of Abu Dhabi into the Foundry Company, AMD's manufacturing spinoff announced in October. It was announced in December that ATIC will own more of Foundry than originally anticipated, 65.8 percent, largely due to AMD's falling stock price.

The decision clears the way for the formal formation of the Foundry Company. Officials have said that a formal announcement, including a new identity for the corporation, should be made in the coming weeks.

This notification from CFIUS marks a major milestone in the creation of The Foundry Company joint venture, said Travis Bullard, an AMD spokesman. One of the major remaining steps will be AMD stockholder approval for the issuance of the shares.

CFIUS also found that an investment in AMD itself by another Arab company, Mubadala, is not a transaction subject to review.

CFIUS is an arm of the United States Treasury Department that works with other government agencies to review any acquisition of a domestic corporation by a foreign firm. It has the power to call off any deal, though it rarely does so.

The microchip manufacturing plant planned for Malta is expected to employ 1,465 in a variety of technical and administrative positions. Assuming all goes well, Foundry is hoping to begin construction in the summer.""

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