AMD Clears the Deck

Advanced Micro Devices(AMD Quote) has spun off a small chip business as the company focuses its energy on taking on microprocessor giant Intel(INTC Quote).

Sunnyvale, Calif.-based AMD announced Tuesday that it has formed a strategic partnership with Raza Microelectronics, whereby AMD will transfer its Alchemy line of embedded processors to RMI. Terms of the deal were not disclosed, although AMD said it will become an investor in RMI.

"RMI is a well-respected company, and we believe that RMI is in an excellent position to leverage their MIPS technology leadership to invest in the future growth of the world-class Alchemy processor family," said AMD CEO Hector Ruiz in a statement.

RMI, a privately held chip company based in Cupertino, Calif., was founded by Atiq Raza, the former president of AMD. ...