UPDATE 1-AMD expects non-cash gain from GlobalFoundries

* Amends shareholders’ agreement

* Stake in GlobalFoundries at 14 percent

SAN FRANCISCO, Dec 27 (BestGrowthStock) – Microchip designer
Advanced Micro Devices (AMD.N: ) 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 (INTC.O: ) 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 percent, 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.
(Reporting by Noel Randewich; Editing by Tim Dobbyn)

UPDATE 1-AMD expects non-cash gain from GlobalFoundries