AMD chief makes shock departure

The chief executive (CEO) of AMD resigned from his post last night under clouds of speculation.

Dirk Meyer became head of the world's second largest chipmaker back in 2008. He initially joined the firm in 1996 and was responsible for the team which developed AMD's famed Athlon processor.

A statement from chairman of AMD, Bruce Claflin, admitted Meyer had "successfully stabilised" the company following "difficult times."

"However, the board believes we have the opportunity to create increased shareholder value over time," he said. "This will require the company to have significant growth, establish market leadership and generate superior financial returns."

"We believe a change in leadership at this time will accelerate the company's ability to accomplish these objectives."

The company's chief financial officer (CFO), Thomas Seifert, has taken over Meyer's role on an interim basis but AMD confirmed he had asked not to be considered for the permanent position.

Instead, AMD has formed a "CEO search committee" led by Claflin to find Meyer's successor.

Despite spokespeople from AMD playing this out as a resignation rather than a removal, a legal filing described Meyer's departure a termination of employment without cause" and a number of reports from the US claimed the board dint think Meyer had turned the fortunes of the company around fast enough.

AMD also used the statement on Meyer to reveal its preliminary financial results for the fourth quarter of 2010, claiming revenue had risen two per cent sequentially to reach $1.65 billion (1.06 billion).