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http://www.reuters.com/article/2 ... gersNews&rpc=43

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Advanced Micro Devices has dumped its equity stake in GlobalFoundries Inc, three years after spinning off the company that makes most of its computer chips, in a move that frees it to strike manufacturing deals with other foundries.
The chipmaker will continue to outsource chip manufacturing to GlobalFoundries, but the Abu Dhabi-controlled foundry would no longer have exclusive manufacturing rights to some of AMDs chips.

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As part of the agreement, AMD will make a payment of $425 million to GlobalFoundries to waive off the exclusivity deal, incurring a related charge of $703 million in the first-quarter.
"The remaining portion of the one-time charge is a $278 million non-cash expense for AMD's equity ownership transfer to Global Foundries," the company said on a call with analysts.

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GlobalFoundries struggled to bring its 28nm chip fabrication on-line last year, prompting AMD to shift its production to rival TSMC.
AMD, a distant second to Intel Corp in selling microprocessors that are the brains of PCs, had seen production issues at GlobalFoundries hurt output last year.
The companies also signed a new supply agreement, which waives certain quarterly payments that AMD was to make to GlobalFoundries this year as part of the 2012 wafer supply agreement.

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