An arm of the U.S. Treasury Department has approved Advanced Micro Devices' plan to create a new foundry company with major investment from the government of Abu Dhabi.
AMD announced in October that it would spin off its chip-making operations into a separate company. Two investment funds owned by the government of Abu Dhabi said they'd contribute new capital to AMD and to the new foundry company.
On Tuesday, AMD announced that the Committee on Foreign Investment in the United States has cleared the creation of The Foundry Company, the company that will make chips. The CFIUS is an office within the Treasury Department that examines foreign investments in U.S. companies in part with an eye toward safeguarding national security.
The committee also determined that the Abu Dhabi fund's investment in AMD does not require review.
Last month, AMD and the Abu Dhabi investment funds renegotiated the terms of the agreement, likely due to AMD's plunging stock price. As a result, AMD will now own 34.2 percent of the foundry company, rather than 44.4 percent as originally planned. In addition, the Abu Dhabi investment firm will pay less per share for the 58 million shares it agreed to buy of AMD.
As of early December, AMD said it expects the deals to close at the beginning of this year.