AMD faces more ATI charges

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Itís been roughly two years since AMD and ATI announced plans to merge together, and yet the $5.4 billion deal continues to weigh on the company. In a filing with the Securities and Exchange Commission, AMD said it would take charges totaling nearly $1 billion in the second quarter, with most of the money related to its acquisition of the graphics firm.

Specifically, ATIís former handheld and digital TV business units didnít perform up to expectations and thus the struggling chip maker will take an $880 million goodwill and intangible assessment charge. Other charges for the quarter include some associated with recent layoffs and restructuring efforts as well as its investment in Spansion Ė a joint venture with Fujitsu to make flash memory chips.

The write-down of the handheld and digital TV units suggests that AMD could be preparing to shed those non-core businesses that came with the acquisition of ATI. Conversely, ATIís graphics processors are currently a bright spot in AMDís business, with their latest Radeon 4800 series garnering positive reviews around the web.

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