AMD has written down the value of its 8% shareholding in GloFo from $460m to $277m.
The $209m write-down was taken as an impairment charge in its Q4 financial results.
At the Q4 earnings calls, AMD CFO Thomas Seifert said that this time last year the investment was valued at $460m.
According to the SeekingAlpha transcript of the call, Seifert added: “Based on certain indicators, their future growth outlook, they have changed the time-line on the new fab in Abu Dhabi, their business plans have changed, and we re-evaluated our investment in the company. It has decreased now down to $277m.”
Seifert added: “That is not so much a statement about 32nm yields at this point in time but about the bigger picture and long-term growth outlook of Globalfoundries and how they have adjusted their plans.”
Since AMD put its $460m valuation on its GloFo stake back in Q1 2011, AMD has cancelled plans to make 28nm APUs at GloFo and decided to make them at TSMC instead.
GloFo’s spokesman Jason Gorss says the company does not make any distinction between its 32nm and 28nm processes.