Slide 1: Introducing The Foundry Company and The New 'Asset Smart' AMD
Introducing The Foundry Company and The New ‘Asset Smart’ AMD October 7, 2008
Slide 2: A New Era for The Semiconductor Industry
A New Era for The Semiconductor Industry AMD and Advanced Technology Investment Company (ATIC) of Abu Dhabi to Create New Leading-Edge Semiconductor Manufacturing Company Mubadala increases investment in financially-stronger AMD, which is simultaneously unlocking the value of its manufacturing asset
Slide 3: Featuring World-Class Partners
Featuring World-Class Partners Manufacturing excellence Innovator in x86 CPU and graphics design Large, global financial investor with portfolio of relationships with world-class companies like GE, Rolls-Royce and Carlyle Group Committed and patient (long-term) capital ATIC is an investment company
Slide 4: AMD and ATIC to Create Leading-Edge Semiconductor Manufacturing Company
AMD and ATIC to Create Leading-Edge Semiconductor Manufacturing Company Focused on leading-edge process and manufacturing technology leadership To build new state-of-the-art manufacturing facility in Upstate New York, to create more than 1,400 jobs; expand existing manufacturing facility in Dresden
Slide 5: Business Case: A Large and Timely Growth Opportunity
Business Case: A Large and Timely Growth Opportunity Global demand is growing for contract semiconductor manufacturing - particularly leading-edge, independent foundry services Global semiconductor revenues are growing, enhanced by shift to foundries (1) Rapidly rising cost and complexity in semicon
Slide 6: Business Case: Global Foundry Growth
Business Case: Global Foundry Growth Global semiconductor revenues are growing, enhanced by shift to foundries (1) Source: Gartner research Foundry Industry Revenues (1) USD Billions $25 $25 $27 $28 $32 2008E 2009E 2010E 2011E 2012E 2008E 2009E 2010E 2011E 2012E Semiconductor Industry Revenues (1) U
Slide 7: Because of Rapidly Rising Cost and Complexity
Because of Rapidly Rising Cost and Complexity 90-65 nm ~$3.5-$4.0B 45-32 nm ~$4.5-$6.0B 22-12 nm ~$2.5-$3.0B Fab Start-up Cost Comparison (2) USD Billions (1) Industry average for Logic process R&D; McKinsey analysis. (2) Average capex of 300mm Logic fabs in World Fab Watch database. Source: In-Stat
Slide 8: TOSHIBA
TOSHIBA © AMD
Slide 9: Business Case: IBM Technology Alliance = R&D and Customers
Business Case: IBM Technology Alliance = R&D and Customers “The Foundry Company’s membership in the alliance brings new intellectual capital to our open, collaborative effort and continues to build on the momentum the alliance has established in semiconductor technologies over the last six years. ”
Slide 10: Business Case: AMD Track Record of Manufacturing and Technology Excellence
Business Case: AMD has a Track Record of Manufacturing and Technology Excellence Node development (date of technology introduction (1) ) 2003 2004 2005 2006 2007 2008 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2002 1Q 2Q 3Q 4Q (1) Source: AMD, Company data 90nm 130nm 65n
Slide 11: Creating a Global Leader
Technology Leadership Creating a Global Leader Capital Funding Capacity Roadmap Leading-edge Volumes Manufacturing Excellence Global World-class Team The Foundry Company will be a new global enterprise combining manufacturing excellence, patient capital, business acumen and global talent to serve a
Slide 12: Building a New Manufacturing Facility in New York
Building a New Manufacturing Facility in New York Fab 4X in Saratoga County will: Create over 1,400 permanent high- paid, high-tech direct manufacturing jobs in New York, projected to have an annual payroll of more than $88 million in 2012. Ultimately create 2,865 sustained, long- term jobs, as well
Slide 13: © a
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Slide 14: Transaction Summary
Transaction Summary (1) Warrants will have an exercise price of $0.01 The Foundry Company AMD will sell to Mubadala 58M new shares and 30M warrants (1) in exchange for over $0.3B which will increase Mubadala’s ownership in AMD to 19.3% Mubadala has a right to designate a member of the Board of Direc
Slide 15: AMD Summary of Benefits
AMD Summary of Benefits AMD Customers Semiconductor Industry Dresden New York The Foundry Company Investors Strengthened balance sheet, world-class partner Guaranteed access to next-generation processing technology Safe, stable and scalable long-term partner committed to enabling shared success Incr
Slide 16: Transaction Close
Transaction Close Transaction close expected early in 2009 and is dependent on: Transfer of New York incentives and subsidies for the creation of a state-of-the-art manufacturing facility in Upstate New York Continuation of Dresden subsidies and transfer of Fab 36 debt Securing routine merger contro
Slide 17: Summary
Summary AMD and ATIC are creating The Foundry Company - a new global enterprise combining manufacturing excellence, patient capital, business acumen and global talent to serve growing global demand Will expand existing manufacturing facility in Dresden; build new state-of-the-art manufacturing facil
Slide 18: Additional Information and Where to Find It
Additional Information and Where to Find It AMD will file a proxy statement pursuant to which AMD’s board of directors will solicit proxies in connection with seeking AMD stockholder approval of the issuance of AMD shares and warrants pursuant to the Master Transaction Agreement with the Securities