NEW YORK, April 3 (Reuters) - Advanced Micro Devices said on Sunday it would book a non-cash gain of $492 million in its fiscal first quarter related to the dilution of equity interest in Globalfoundries Inc, a company it jointly created in early 2009.
Separately, the U.S. chipmaker amended a wafer-supply agreement with Globalfoundries.
The non-cash gain is unrelated to the amendment, AMD said in a statement. Instead, the gain has to do with a change in accounting for its investment in, and contribution to, Globalfoundries, which AMD jointly created along with Advanced Technology Investment Co.
The amendment revises and fixes the pricing of wafers delivered this year, and sets a fixed number of wafers per quarter. AMD said it will also pay a quarterly amount to Globalfoundries in 2012, if the supplier meets availability conditions.
AMD said it expects to pay the supplier about $1.1 billion to $1.5 billion in 2011, and $1.5 billion to $1.9 billion in 2012, for wafer purchases under the amended agreement.
The wafers are to be used in AMD's microprocessor and accelerated processing unit, the company said.
(Reporting by Jonathan Spicer; editing by Gunna Dickson) Keywords: AMD GLOBALFOUNDRIES/ (jonathan.spicer@thomsonreuters.com; +1-646-223-6253; Reuters Messaging: jonathan.spicer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Separately, the U.S. chipmaker amended a wafer-supply agreement with Globalfoundries.
The non-cash gain is unrelated to the amendment, AMD said in a statement. Instead, the gain has to do with a change in accounting for its investment in, and contribution to, Globalfoundries, which AMD jointly created along with Advanced Technology Investment Co.
The amendment revises and fixes the pricing of wafers delivered this year, and sets a fixed number of wafers per quarter. AMD said it will also pay a quarterly amount to Globalfoundries in 2012, if the supplier meets availability conditions.
AMD said it expects to pay the supplier about $1.1 billion to $1.5 billion in 2011, and $1.5 billion to $1.9 billion in 2012, for wafer purchases under the amended agreement.
The wafers are to be used in AMD's microprocessor and accelerated processing unit, the company said.
(Reporting by Jonathan Spicer; editing by Gunna Dickson) Keywords: AMD GLOBALFOUNDRIES/ (jonathan.spicer@thomsonreuters.com; +1-646-223-6253; Reuters Messaging: jonathan.spicer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.