Advanced Micro Devices Inc plans to sell and lease back its campus in Austin, Texas, to raise cash and fund its chipmaking business as it diversifies beyond the struggling PC industry into new markets.
AMD expects to sell the 58-acre site for between $150 million and $200 million and close a deal in the second quarter, company spokesman Drew Prairie told Reuters on Tuesday.
The chipmaker’s move to sell its campus, reported earlier by the Austin American-Statesman, comes as the company and its larger rival Intel Corp struggle with slowing personal computer sales.
AMD’s cash declined $279 million in the third quarter to $1.48 billion. AMD said it was reducing its “optimal” cash target to $1.1 billion from $1.5 billion due to the business’ now smaller size.
Shares of AMD rose 0.5 percent on Tuesday to close at $1.88.