AMD has announced that it will take a charge of $880m related to ATI's former business units in the second quarter of 2008, two years after it acquired the graphics chip maker.
The charges relate to impaired assets in ATI's former handheld and digital TV business units, which were merged into AMD's consumer electronics group after the acquisition.
AMD's acquisition of ATI for $5.4bn was viewed as a potent weapon in its attempt to dent Intel's dominance of the x86 processor market. However, the company has now reported six consecutive quarterly losses.
In the first quarter of 2008, AMD reported a net loss of $358m on revenue of $1.51bn. The results included $50m related to ATI's acquisition.
The company on Friday also announced it was taking charges of $32m related to restructuring, which began in the second quarter in an effort to cut costs. The restructuring is expected to be completed by the end of the year, AMD said in a filing with the US Securities and Exchange Commission.
The bulk of the charges relate to employee severance, the company said.
The company is also taking an impairment charge of $36m related to the company's short-term investments, including a $24m charge for investments in Spansion, a flash memory company that was spun off from AMD in 2005.