AMD adds $880M in charges to ATI deal, others

July 11, 2008 – Chipmaker AMD says it will take an $880M writedown charge against its underperforming handheld and digital TV units, which were part of its acquisition of ATI Technologies.

In a regulatory filing, AMD also says it will record a $32M restructuring charge in 2Q in a separate bid to “reduce its breakeven point,” mostly involving employee severance which will be completed by year’s end.

In addition, AMD warned about other charges of ~$24M related to its investment in Spansion, and another $12M charge related to holdings in Auction Rate Securities.

Not all the news is negative, though — AMD said it will report a $190M gain in the quarter due to sale of certain 200mm wafer fab tools. Tower Semiconductor last fall acknowledged that it was buying some 200mm tools from AMD as well as Intel.

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