AMD is expected to announce today that it is to split into two separate companies, one focused on designing processors and the other on manufacturing chips.

Sources including The New York Times suggest that AMD will unveil the move later today, along with an announcement of a fresh injection of cash to help the company complete a new fabrication plant.

The move is a drastic one for the firm, which until now has designed and manufactured its own processor chips as does its rival Intel.

However, AMD has seemed to be struggling ever since its acquisition of graphics and chipset maker ATI in 2006.

Following the split, the foundry side of the company is likely to manufacture chips for other companies as well as AMD.

Many other chip firms already subcontract manufacturing to foundry companies, including VIA Technologies which sells low-power PC chips for mini-laptops and other devices.