NEW YORK, Oct 7, 2008 (AFP) - Advanced Micro Devices (AMD) and the Advanced Technology Investment Company (ATIC) of Abu Dhabi will join forces to create a semiconductor manufacturing company based near Albany, New York, the companies announced Tuesday.

Abu Dhabi will be the major stakeholder in the new company, with a 55.6 percent share of the venture. AMD, based in Sunnyvale, California, will own a 44.4 percent share, they said in a statement.

Provisionally to be called 'The Foundry Company' officials said the venture would initially create some 1,400 jobs.

ATIC will invest 2.1 billion dollars to purchase its stake in The Foundry Company, of which it will invest 1.4 billion directly in the new entity, the statement said.

The remainder is to be paid to AMD to purchase additional shares in The Foundry Company.

ATIC has also committed additional equity funding to The Foundry Company of a minimum of 3.6 billion dollars and up to six billion dollars over the next five years to fund expansion of chip-making capacity.