Advanced Micro Devices, Inc. (AMD) said on Sunday it would record a $492 million, noncash gain in the first quarter, related to the dilution of its equity interest in Globalfoundries Inc, a company which AMD jointly created in early 2009 along with Advanced Technology Investment Co.
According to a statement released from the co., the non-cash gain has to do with a change in accounting for AMD’s investment in, and contribution to, Globalfoundries Inc.
Separately, the U.S. chipmaker, announced the amendment of a wafer-supply agreement with Globalfoundries [GF]. The primary purpose of the amendment was to revise and fix the pricing methodology applicable to wafers delivered this year for AMD’s microprocessor and accelerated processing unit, APU, products. AMD said it will pay a quarterly amount to Globalfoundries in 2012, if the supplier meets availability conditions.
AMD expects to pay the supplier about $1.1 billion to $1.5 billion in 2011, and $1.5 billion to $1.9 billion in fiscal 2012, for wafer purchases under the amended agreement. In 2010, AMD paid GF approximately $1.2 billion for wafer purchases.
AMD closed at $8.37 p/sh on Friday.