11/08/2008 05:12 am ET | Updated May 25, 2011

Abu Dhabi Will Produce AMD Chips In Major Play For Technology Credibility

The real surprise is the identity of those other people, The New York Times's Ashlee Vance writes.

The Advanced Technology Investment Company, an organization created by the Abu Dhabi government, has agreed to invest up to $8 billion in A.M.D.'s factory spinoff and will receive a 55.6 percent stake in the entity, which has been temporarily named the Foundry Company. Foundry will initially make chips just for A.M.D. but will eventually compete for other customers.

Why would an investment company with virtually no technology experience, located halfway around the world from Silicon Valley, bet billions of dollars that it can conquer one of the world's toughest businesses?

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