Chip maker Advanced Micro Devices (AMD) is set to announce that it is forming a new company with Fujitsu Ltd. that will include both companies' flash memory operations, according to a published report.
The new venture is expected to give AMD 60 percent control, with Fujitsu taking the remaining 40 percent and is a prelude to AMD splitting into two companies, the San Jose Mercury News reported Friday, citing sources.
The companies have been working together for over a decade and each hold a 50 percent share in Fujitsu-AMD Semiconductor Ltd. However, they compete with each other in Europe over the sales of their jointly developed memory chips, according to the report.
The new partnership will be centered on allowing the companies to jointly develop flash memory chips with a joint sales and marketing force, and will reportedly be headed by AMD Senior Vice President Bertrand Cambou. Furthermore, analysts believe that the deal is a prelude to AMD splitting into two companies, one dedicated to core microprocessors and the other focused on memory, the report said.
Representatives at Sunnyvale, California, AMD were not immediately available to comment on the report. However, the company is scheduled to hold a press conference to "announce a strategic corporate initiative" at 2 p.m. PST Monday.