AMD and IBM have agreed to a financing deal which will provide payments for AMD sales receivables in an economic development zone in China's Tianjin region.
The financing arrangement calls for IBM to provide AMD with funds to cover the period -- typically about four months -- during which AMD typically waits for customer payments. The partnership was announced Friday by IBM's Global Financing unit.
"This new partnership with IBM Global Financing and the Tianjin Government will bring great benefits to businesses looking to speed up the conversion of their invoices to cash," said IBM's Mario Bernardis in a statement. "We are grateful to the Tianjin Administration Bureau of Industry and Commerce for granting IBM this factoring license -- a first of its kind in China." Bernardis is general manager for worldwide commercial financing at IBM Global Financing.
The deal establishes an IBM factoring entity in China. In the partnership, the IBM unit will pay AMD for inventory delivered to its distributor network. Payment terms will be arranged with AMD distributors on a flexible schedule.
AMD and IBM have collaborated for years on a series of processor, server, and other partnerships.
IBM, which sold much of its PC manufacturing operation in China to Lenovo, has been moving into computer services in China, more-or-less tracking much of its worldwide operations as it branches into consulting and financing operations.
The Tianjin Binhai New Area development zone is a major hub between north and south China. Some 17% of China's population is located in the region, which also boasts 25 universities and 140 research institutes.
