— NFME and AMD Clo­se $436M Tran­sac­tion and Launch New JV to Expand the Cus­to­mer Base for AMD’s World-Class Suz­hou and Penang Assem­bly and Test Faci­li­ties —

 — NFME pays $371M for 85% JV ownership —

SUNNYVALE, Calif. — April 29, 2016 — AMD (NASDAQ: AMD) and Nan­tong Fuji­tsu Microelec­tro­nics Co., Ltd. (NFME) (SZSE: TFWD) today announ­ced that they have clo­sed the tran­sac­tion to crea­te a joint ven­ture offe­ring dif­fe­ren­tia­ted assem­bly, test, mark, and pack (ATMP) capa­bi­li­ties to both AMD and a broa­der ran­ge of customers.

“Com­bi­ning AMD’s world-class teams and faci­li­ties in Penang and Suz­hou with NFME’s exper­ti­se in the gro­wing assem­bly and test mar­ket will crea­te a new out­sour­ce assem­bly and test lea­der with the sca­le and capa­bi­li­ties to help us deli­ver our upco­ming high-per­for­mance tech­no­lo­gies and pro­ducts that can re-shape the indus­try,” said AMD Pre­si­dent and CEO Dr. Lisa Su. “The crea­ti­on of this joint ven­ture marks ano­ther step in buil­ding a more focu­sed AMD as we com­ple­te our tran­si­ti­on to a fab­less busi­ness model, enhan­ce our sup­p­ly chain ope­ra­ti­ons, and fur­ther streng­then our finan­cial position.”

“AMD is a world class semi­con­duc­tor pro­vi­der with advan­ced flip chip pack­a­ging and test tech­no­lo­gies. The­se capa­bi­li­ties are com­ple­men­ta­ry with NFME’s advan­ced pack­a­ging and test tech­no­lo­gies, such as its flip chip and bump tech­no­lo­gy for the com­pu­ting, com­mu­ni­ca­ti­on and con­su­mer mar­ket. The estab­lish­ment of this joint ven­ture will ele­va­te the com­pe­ti­ti­ve­ness of NFME’s flip chip pack­a­ging and test tech­no­lo­gies to a world-class level. With this joint ven­ture, NFME’s advan­ced pack­a­ging and test capa­bi­li­ties will account for 70 per­cent of its total reve­nue, lea­ding the enti­re indus­try and ran­king among the top pack­a­ging and test com­pa­nies in the world,” said Chair­man of Nan­tong Fuji­tsu Mr. Shi Mingda.

Key high­lights of the deal include:

• NFME’s affi­lia­tes have purcha­sed an 85 per­cent share of AMD’s Penang, Malay­sia and Suz­hou, Chi­na ATMP ope­ra­ti­ons and act as con­trol­ling part­ner for the new joint ven­ture business.
• AMD recei­ved from NFME appro­xi­m­ate­ly $371 mil­li­on, exclu­ding purcha­se pri­ce adjus­t­ments, with net cash pro­ceeds of appro­xi­m­ate­ly $320 mil­li­on after pay­ment of taxes and other cus­to­ma­ry expen­ses. AMD reta­ins a 15 per­cent owner­ship of the Penang and Suz­hou operations.
• The tran­sac­tion is expec­ted to be cost neu­tral to AMD’s P&L while signi­fi­cant­ly redu­cing AMD’s capi­tal expen­dit­ures. AMD will account for its 15 per­cent owner­ship sta­ke in the joint ven­ture and its results of ope­ra­ti­ons under the equi­ty method of accounting.
• Appro­xi­m­ate­ly 1,700 AMD employees tran­si­tio­ned to the joint venture.

 

J.P. Mor­gan Secu­ri­ties LLC ser­ved as exclu­si­ve finan­cial advi­sor to AMD, and pro­vi­ded a fair­ness opi­ni­on to the board of direc­tors of AMD.

 

Sup­port­ing Resources

• Find more infor­ma­ti­on on the joint ven­ture here
• Learn more about AMD’s Long-term Strategy
• Visit the AMD Inves­tor Rela­ti­ons site

 

About AMD

For more than 45 years AMD has dri­ven inno­va­ti­on in high-per­for­mance com­pu­ting, gra­phics, and visua­liza­ti­on tech­no­lo­gies ― the buil­ding blocks for gam­ing, immersi­ve plat­forms, and the dat­a­cen­ter. Hundreds of mil­li­ons of con­su­mers, lea­ding For­tu­ne 500 busi­nesses, and cut­ting-edge sci­en­ti­fic rese­arch faci­li­ties around the world rely on AMD tech­no­lo­gy dai­ly to impro­ve how they live, work, and play. AMD employees around the world are focu­sed on buil­ding gre­at pro­ducts that push the boun­da­ries of what is pos­si­ble. For more infor­ma­ti­on about how AMD is enab­ling today and inspi­ring tomor­row, visit the AMD (NASDAQ: AMD) web­site, blog, Face­book and Twit­ter pages.

 

About Nan­tong Fuji­tsu Microelectronics

Estab­lished in 1997 and head­quar­te­red in Nan­tong City of China’s Jiangsu pro­vin­ce, Nan­tong Fuji­tsu Microelec­tro­nics Co., Ltd. (NFME) stands at the fore­front of indus­try sci­ence and tech­no­lo­gy deve­lo­p­ment as one of the 3 lar­gest IC assem­bly and test­ing com­pa­nies in Chi­na. NFME ser­vices most of the top tier semi­con­duc­tor manu­fac­tu­r­ers in the world. Cur­rent com­pa­ny offe­rings include advan­ced assem­bly tech­no­lo­gies, such as WLCSP, FC, BGA, BUMPING, MEMS, tra­di­tio­nal assem­bly tech­no­lo­gies, such as QFN, QFP, TSSOP and auto­mo­ti­ve elec­tro­nics assem­bly tech­no­lo­gies. Bes­i­des, NFME has the capa­bi­li­ty of test­ing, inclu­ding Wafer Pro­be, Final Test, and Sys­tem Level Test. NFME is the first com­pa­ny, which rea­li­zes the turn-key of mass pro­duc­tion of 12 inch 28 nm high-end mobi­le pho­ne pro­ces­sor chip in Chi­na. The com­pa­ny is lis­ted on the Shen­zhen Stock Exch­an­ge under the Ticker name “TFWD” or “002156.SZ”. Learn more at: http://www.fujitsu-nt.com/.

Cau­tio­na­ry Statement 

This press release con­ta­ins for­ward-loo­king state­ments con­cer­ning Advan­ced Micro Devices, Inc. (“AMD” or the “Com­pa­ny”), inclu­ding AMD’s expec­ted bene­fits and syn­er­gies from the tran­sac­tion and  the joint ven­tures bet­ween AMD and NFME, inclu­ding the JVs beco­ming an assem­bly and test lea­der, that the JVs have the sca­le and capa­bi­li­ties to help AMD deli­ver its upco­ming high-per­for­mance tech­no­lo­gies and pro­ducts that can re-shape the indus­try; AMD’s abili­ty to suc­cessful­ly tran­si­ti­on to a fab­less busi­ness model, enhan­ce AMD’s sup­p­ly chain ope­ra­ti­ons and fur­ther streng­then AMD’s finan­cial posi­ti­on; that the tran­sac­tion is expec­ted to be cost neu­tral to AMD’s P&L while signi­fi­cant­ly redu­cing AMD’s capi­tal expen­dit­ures; and that AMD will account for the JVs under the equi­ty method of accoun­ting, which are made pur­su­ant to the Safe Har­bor pro­vi­si­ons of the Pri­va­te Secu­ri­ties Liti­ga­ti­on Reform Act of 1995. For­ward-loo­king state­ments are com­mon­ly iden­ti­fied by words such as “would,” “may,” “expects,” “belie­ves,” “plans,” “intends,” “pro­jects” and other terms with simi­lar mea­ning. Inves­tors are cau­tio­ned that the for­ward-loo­king state­ments in this docu­ment are based on cur­rent beliefs, assump­ti­ons and expec­ta­ti­ons, speak only as of the date of this docu­ment and invol­ve risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from cur­rent expec­ta­ti­ons. Such state­ments are sub­ject to cer­tain known and unknown risks and uncer­tain­ties, many of which are dif­fi­cult to pre­dict and gene­ral­ly bey­ond AMD’s con­trol, that could cau­se actu­al results and other future events to dif­fer mate­ri­al­ly from tho­se expres­sed in, or impli­ed or pro­jec­ted by, the for­ward-loo­king infor­ma­ti­on and state­ments. Mate­ri­al fac­tors that could cau­se actu­al results to dif­fer mate­ri­al­ly from cur­rent expec­ta­ti­ons include, wit­hout limi­ta­ti­on, the fol­lo­wing: Intel Corporation’s domi­nan­ce of the micro­pro­ces­sor mar­ket and its aggres­si­ve busi­ness prac­ti­ces may limit AMD’s abili­ty to com­pe­te effec­tively; AMD reli­es on GLOBALFOUNDRIES Inc. (GF) to manu­fac­tu­re all of its micro­pro­ces­sor and APU pro­ducts and a cer­tain por­ti­on of its GPU pro­ducts, with limi­t­ed excep­ti­ons. If GF is not able to satis­fy AMD’s manu­fac­tu­ring requi­re­ments, its busi­ness could be adver­se­ly impac­ted; AMD reli­es on third par­ties to manu­fac­tu­re its pro­ducts, and if they are unable to do so on a time­ly basis in suf­fi­ci­ent quan­ti­ties and using com­pe­ti­ti­ve tech­no­lo­gies, AMD’s busi­ness could be mate­ri­al­ly adver­se­ly affec­ted; fail­ure to achie­ve expec­ted manu­fac­tu­ring yields for AMD’s pro­ducts could nega­tively impact its finan­cial results; the suc­cess of AMD’s busi­ness is depen­dent upon its abili­ty to intro­du­ce pro­ducts on a time­ly basis with fea­tures and per­for­mance levels that pro­vi­de value to its cus­to­mers while sup­port­ing and coin­ci­ding with signi­fi­cant indus­try tran­si­ti­ons; if AMD can­not gene­ra­te suf­fi­ci­ent reve­nue and ope­ra­ting cash flow or obtain exter­nal finan­cing, it may face a cash short­fall and be unable to make all of its plan­ned invest­ments in rese­arch and deve­lo­p­ment or other stra­te­gic invest­ments; the loss of a signi­fi­cant cus­to­mer may have a mate­ri­al adver­se effect on AMD; glo­bal eco­no­mic uncer­tain­ty may adver­se­ly impact AMD’s busi­ness and ope­ra­ting results; AMD may not be able to gene­ra­te suf­fi­ci­ent cash to ser­vice its debt obli­ga­ti­ons or meet its working capi­tal requi­re­ments; AMD has a sub­stan­ti­al amount of indeb­ted­ness which could adver­se­ly affect its finan­cial posi­ti­on and pre­vent it from imple­men­ting its stra­tegy or ful­fil­ling its con­trac­tu­al obli­ga­ti­ons; the agree­ments gover­ning AMD’s notes and the secu­red revol­ving line of cre­dit for a prin­ci­pal amount up to $500 mil­li­on (Secu­red Revol­ving Line of Cre­dit) impo­se rest­ric­tions on AMD that may adver­se­ly affect its abili­ty to ope­ra­te its busi­ness; the com­ple­ti­on and impact of its 2015 res­truc­tu­ring plan, its trans­for­ma­ti­on initia­ti­ves and any future res­truc­tu­ring actions could adver­se­ly affect it; the mar­kets in which AMD’s pro­ducts are sold are high­ly com­pe­ti­ti­ve; uncer­tain­ties invol­ving the orde­ring and ship­ment of AMD’s pro­ducts could mate­ri­al­ly adver­se­ly affect it; AMD’s receipt of reve­nue from its semi-cus­tom SoC pro­ducts is depen­dent upon its tech­no­lo­gy being desi­gned into third-par­ty pro­ducts and the suc­cess of tho­se pro­ducts; the demand for AMD’s pro­ducts depends in part on the mar­ket con­di­ti­ons in the indus­tries into which they are sold. Fluc­tua­tions in demand for AMD’s pro­ducts or a mar­ket decli­ne in any of the­se indus­tries could have a mate­ri­al adver­se effect on its results of ope­ra­ti­ons; AMD’s abili­ty to design and intro­du­ce new pro­ducts in a time­ly man­ner is depen­dent upon third-par­ty intellec­tu­al pro­per­ty; AMD depends on third-par­ty com­pa­nies for the design, manu­fac­tu­re and sup­p­ly of mother­boards, soft­ware and other com­pu­ter plat­form com­pon­ents to sup­port its busi­ness; if AMD loses Micro­soft Corporation’s sup­port for its pro­ducts or other soft­ware ven­dors do not design and deve­lop soft­ware to run on AMD’s pro­ducts, its abili­ty to sell its pro­ducts could be mate­ri­al­ly adver­se­ly affec­ted; AMD’s reli­ance on third-par­ty dis­tri­bu­tors and AIB part­ners sub­jects it to cer­tain risks; AMD’s ina­bi­li­ty to con­ti­nue to attract and retain qua­li­fied per­son­nel may hin­der its pro­duct deve­lo­p­ment pro­grams; in the event of a chan­ge of con­trol, AMD may not be able to repurcha­se its out­stan­ding debt as requi­red by the appli­ca­ble inden­tures and its Secu­red Revol­ving Line of Cre­dit, which would result in a default under the inden­tures and its Secu­red Revol­ving Line of Cre­dit; the semi­con­duc­tor indus­try is high­ly cycli­cal and has expe­ri­en­ced seve­re down­turns that have mate­ri­al­ly adver­se­ly affec­ted, and may con­ti­nue to mate­ri­al­ly adver­se­ly affect its busi­ness in the future; acqui­si­ti­ons, dives­ti­tures and/or joint ven­tures could dis­rupt its busi­ness, harm its finan­cial con­di­ti­on and ope­ra­ting results or dilute, or adver­se­ly affect the pri­ce of, its com­mon stock; AMD’s busi­ness is depen­dent upon the pro­per func­tio­ning of its inter­nal busi­ness pro­ces­ses and infor­ma­ti­on sys­tems and modi­fi­ca­ti­on or inter­rup­ti­on of such sys­tems may dis­rupt its busi­ness, pro­ces­ses and inter­nal con­trols; data brea­ches and cyber-attacks could com­pro­mi­se AMD’s intellec­tu­al pro­per­ty or other sen­si­ti­ve infor­ma­ti­on, be cos­t­ly to reme­dia­te and cau­se signi­fi­cant dama­ge to its busi­ness and repu­ta­ti­on; AMD’s ope­ra­ting results are sub­ject to quar­ter­ly and sea­so­nal sales pat­terns; if essen­ti­al equip­ment, mate­ri­als or manu­fac­tu­ring pro­ces­ses are not available to manu­fac­tu­re its pro­ducts, AMD could be mate­ri­al­ly adver­se­ly affec­ted; if AMD’s pro­ducts are not com­pa­ti­ble with some or all indus­try-stan­dard soft­ware and hard­ware, it could be mate­ri­al­ly adver­se­ly affec­ted; cos­ts rela­ted to defec­ti­ve pro­ducts could have a mate­ri­al adver­se effect on AMD; if AMD fails to main­tain the effi­ci­en­cy of its sup­p­ly chain as it responds to chan­ges in cus­to­mer demand for its pro­ducts, its busi­ness could be mate­ri­al­ly adver­se­ly affec­ted; AMD out­sour­ces to third par­ties cer­tain sup­p­ly-chain logi­stics func­tions, inclu­ding por­ti­ons of its pro­duct dis­tri­bu­ti­on, trans­por­ta­ti­on manage­ment and infor­ma­ti­on tech­no­lo­gy sup­port ser­vices; AMD may incur future impairm­ents of good­will; AMD’s world­wi­de ope­ra­ti­ons are sub­ject to poli­ti­cal, legal and eco­no­mic risks and natu­ral dis­as­ters, which could have a mate­ri­al adver­se effect on it; world­wi­de poli­ti­cal con­di­ti­ons may adver­se­ly affect demand for AMD’s pro­ducts; unfa­vorable cur­ren­cy exch­an­ge rate fluc­tua­tions could adver­se­ly affect AMD; AMD’s ina­bi­li­ty to effec­tively con­trol the sales of its pro­ducts on the gray mar­ket could have a mate­ri­al adver­se effect on it; if AMD can­not ade­qua­te­ly pro­tect its tech­no­lo­gy or other intellec­tu­al pro­per­ty in the United Sta­tes and abroad, through patents, copy­rights, trade secrets, trade­marks and other mea­su­res, it may lose a com­pe­ti­ti­ve advan­ta­ge and incur signi­fi­cant expen­ses; AMD is a par­ty to liti­ga­ti­on and may beco­me a par­ty to other claims or liti­ga­ti­on that could cau­se it to incur sub­stan­ti­al cos­ts or pay sub­stan­ti­al dama­ges or pro­hi­bit it from sel­ling its pro­ducts; AMD’s busi­ness is sub­ject to poten­ti­al tax lia­bi­li­ties; and a varie­ty of envi­ron­men­tal laws that AMD is sub­ject to could result in addi­tio­nal cos­ts and lia­bi­li­ties. Inves­tors are urged to review in detail the risks and uncer­tain­ties in AMD’s Secu­ri­ties and Exch­an­ge Com­mis­si­on filings, inclu­ding but not limi­t­ed to AMD’s Quar­ter­ly Report on Form 10‑Q for the year ended March 26, 2016.

—30—

AMD, the AMD Arrow logo, and com­bi­na­ti­ons the­reof, are trade­marks of Advan­ced Micro Devices, Inc. Other names are for infor­ma­tio­nal pur­po­ses only and may be trade­marks of their respec­ti­ve owners.