The founder of AMD used to say that "real men have fabs", referring dismissively to those microchip design firms which outsourced, rather than owned, their fabrication plants.
The plants he was talking about - spotless space-age factories where PhD-qualified floor workers in astronaut suits engrave billions of atomic-size transistors onto silicon wafers - perfectly symbolise the semiconductor industry.
But "fabs" are apparently no longer central to the self-image of AMD, where management has now coined the phrase "asset smart" for its new strategy to exit the costly physical side of the business and focus on design and marketing.
And after an announcement last Tuesday, AMD's founder may well say that real men come from Abu Dhabi.
A new government-owned business, Advanced Technology Investment Company (Atic), snapped up AMD's manufacturing arm and will invest up to US$6 billion (Dh22bn) expanding its capacity in the next few years.
Analysts say Atic faces several challenges to succeed where AMD failed, especially since it has no track record of making a profit from large-scale technology manufacturing and will face an early test, as business is expected to weaken with the global economic downturn.
Craig Barrett, the chairman of the world's largest chip maker, Intel, has called modern microprocessors "the most complicated things human beings have ever built".
Building a new fabrication plant can run upwards of $3bn (Dh11bn); keeping it running can go into the hundreds of millions of dollars each year. Atic is an affiliate of the Mubadala Development Company, run by Waleed al Mokarrab, Mubadala's chief operating officer. It believes that spinning off AMD's chipmaking assets into an independent company is a long-term investment that will help further diversify Abu Dhabi's economy.
The new business, known tentatively as The Foundry Company, will offer its services to anyone looking to buy custom made microchips, competing with specialised fabrication business like China's Semiconductor Manufacturing International Corporation and Taiwan's Chartered Semiconductor.
These battle-hardened Asian businesses will form stiff competition for a new company owned by investors with sharp business acumen, but no experience in the complex, cyclical semiconductor industry.
Heidi Susanto, an analyst at Gabelli & Company, thinks the new business will have its hands full trying to become a profitable standalone entity. "First, the Foundry Company will have to start with only AMD on its customer list," she said in a research note released after the announcement.
"Second, competition with other large-scale established foundries will be challenging.
Third, the Foundry Company's cost competitiveness remains a large question. Fourth, general semiconductor outlook is weaker than seasonal given the current weakness in [the] global economy."
"Moving to an 'asset-lite' model is definitely not 'asset smart'," opined the website AMD Investor. "For one, in doing so, it's giving up the 'fundamental technology' race with Intel."
While part of the search for better microchips is determined by better design, much is also determined by new technologies, the site said. "That's why AMD can't give up either race."
Intel's biggest recent technical achievement is a good example of the need for such research. As the transistors that form the building blocks of a microchip get smaller and smaller, with billions now crammed on a single chip, the problem of "leaking" power increases.
These power leaks make the chips run hotter and deplete batteries faster, two big problems in the era of laptop computing. Intel's solution is to insulate the transistors with hafnium, an element used in nuclear reactors and space rockets.
Years of research identified hafnium as an ideal insulator on the atomic scale, and by integrating the element into its chips, Intel will make processors that are up to 20 per cent more energy efficient, while running faster and cooler than anything made before.
The founder of Intel Gordon Moore calls the new technology "the biggest change in transistor technology in 40 years". It will put Intel a full generation ahead of the competition, giving the company a two-year buffer between its best offerings and those of AMD, some analysts say.
Whether the "asset-lite" AMD or the newly created Foundry Company will be capable of the advanced theoretical research that leads to such developments, or whether they will consider such research economically feasible, remains to be seen.
Some believe that Atic's strategy will be to instigate a price war, a battle in which its deep, government-backed pockets will defeat those of its rivals. In a research report released following the deal, the investment bank Morgan Stanley said the new competitive might of The Foundry Company will "likely be long-term negative to the foundry industry".
Stock in Semiconductor Manufacturing International fell to its lowest price ever following the Atic announcement; Macquarie Securities cut its price target for Standard Semiconductor by 35 per cent and its stock also fell to an all-time low.
tgara@thenational.ae
Company%C2%A0profile
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Coal Black Mornings
Brett Anderson
Little Brown Book Group
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
Australia men's Test cricket fixtures 2021/22
One-off Test v Afghanistan:
Nov 27-Dec 1: Blundstone Arena, Hobart
The Ashes v England:
Dec 8-12: 1st Test, Gabba, Brisbane
Dec 16-20: 2nd Test, Adelaide Oval, Adelaide (day/night)
Dec 26-30: 3rd Test, Melbourne Cricket Ground, Melbourne
Jan 5-9, 2022: 4th Test, Sydney Cricket Ground, Sydney
Jan 14-18: 5th Test, Optus Stadium, Perth
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The bio:
Favourite film:
Declan: It was The Commitments but now it’s Bohemian Rhapsody.
Heidi: The Long Kiss Goodnight.
Favourite holiday destination:
Declan: Las Vegas but I also love getting home to Ireland and seeing everyone back home.
Heidi: Australia but my dream destination would be to go to Cuba.
Favourite pastime:
Declan: I love brunching and socializing. Just basically having the craic.
Heidi: Paddleboarding and swimming.
Personal motto:
Declan: Take chances.
Heidi: Live, love, laugh and have no regrets.
Recipe: Spirulina Coconut Brothie
Ingredients
1 tbsp Spirulina powder
1 banana
1 cup unsweetened coconut milk (full fat preferable)
1 tbsp fresh turmeric or turmeric powder
½ cup fresh spinach leaves
½ cup vegan broth
2 crushed ice cubes (optional)
Method
Blend all the ingredients together on high in a high-speed blender until smooth and creamy.
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
MATCH INFO
Tottenham Hotspur 0 Everton 1 (Calvert-Lewin 55')
Man of the Match Allan (Everton)
SERIES INFO
Cricket World Cup League Two
Nepal, Oman, United States tri-series
Tribhuvan University, Kathmandu
Fixtures
Wednesday February 5, Oman v Nepal
Thursday, February 6, Oman v United States
Saturday, February 8, United States v Nepal
Sunday, February 9, Oman v Nepal
Tuesday, February 11, Oman v United States
Wednesday, February 12, United States v Nepal
Table
The top three sides advance to the 2022 World Cup Qualifier.
The bottom four sides are relegated to the 2022 World Cup playoff
1 United States 8 6 2 0 0 12 0.412
2 Scotland 8 4 3 0 1 9 0.139
3 Namibia 7 4 3 0 0 8 0.008
4 Oman 6 4 2 0 0 8 -0.139
5 UAE 7 3 3 0 1 7 -0.004
6 Nepal 0 0 0 0 0 0 0
7 PNG 8 0 8 0 0 0 -0.458
Company%20profile
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