Advanced Micro Devices
says Mubadala Development has invested $622 million in the company to help beef up its growth strategy.
The Abu Dhabi based investment firm will take an 8% stake in AMD, receiving 49 million new shares priced at $12.70. AMD will pay Mubadala $14.6 million for expenses and use the remaining $608 million for its growth strategy and general operations.
Mubadala says it is a non-controlling minority stake and that it will not add a board member to represent the group.
The move comes as speculation swirls around a possible management shakeup and the potential for a new manufacturing approach. Some observers say AMD is exploring the sale of some of its chipmaking facilities in an effort to go so-called fab lite, meaning less emphasis on manufacturing and more of a push toward development of new chips.
Observers say the shift toward a more advanced chip design focus would give AMD more capability to compete with rivals like
AMD shares were up 20 cents to $12.90 in early trading Friday.