AMD expects non-cash gain from GlobalFoundries

SAN FRANCISCO, USA: Microchip designer Advanced Micro Devices said it would have a non-cash gain in the fiscal first quarter of 2011 related to the dilution of its equity interest in GlobalFoundries.

AMD, which competes against Intel in the desktop and server microprocessor market, spun off its manufacturing business in 2009 in a venture with Abu Dhabi-backed Advanced Technology Investment Co, or ATIC, creating GlobalFoundries.

AMD said in a filing it amended its funding and shareholders' agreements with ATIC, that its stake in GlobalFoundries was 14 per cent, and that it would begin accounting for its investment in the company using the cost method.

By shedding most of capital-intensive GlobalFoundries, AMD is focusing on designing microprocessors and graphics cards. It has said it would not invest further in the manufacturer.

Shares of AMD were unchanged at $8.05 in after hours trading after edging up 1 cent during the regular trading session.