Advanced Micro Devices (AMD), the world's second-largest computer chip maker, announced Wednesday that its stockholders had approved a manufacturing joint venture with investment from Abu Dhabi.

AMD, in a statement, said the green light from shareholders paves the way for the creation of the venture, to be known as The Foundry Company, between AMD and the Advanced Technology Investment Co. (ATIC) of Abu Dhabi.

It said AMD stockholders during an extraordinary meeting in Austin, Texas had approved issuing 58 million shares of common stock and warrants to purchase 35 million shares of common stock to an affiliate of another Abu Dhabi company, Mubadala Development Co.

ATIC is a technology investment company owned by the government of Abu Dhabi while Mubadala Development Co. is a joint stock company whose sole shareholder is the Abu Dhabi government.

The Santa Clara, California-based AMD, which has lost money for nine straight quarters, said the transaction creating The Foundry Company is expected to close on March 2.

AMD, which has been falling behind market leader Intel Corp., has said the move would result in one company that designs semiconductors and another which builds them.

The Foundry Company will include manufacturing facilities in Dresden, Germany, with plans to expand that site as well as build a state-of-the art facility in Saratoga County, New York.

The new company will have its principal headquarters in Silicon Valley, and its research and development and manufacturing teams in New York, Dresden, and Austin.

AMD's share price lost 7.17 percent on Wall Street on Wednesday to close at 2.20 dollars.