Item 2.06. Material Impairments

On December 6, 2007, Advanced Micro Devices, Inc. (the "Company") filed a Current Report on Form 8-K (the "Original Form 8-K") stating that the current carrying value of its goodwill, which the Company had recorded as a result of its October 2006 acquisition of ATI Technologies Inc. ("ATI Acquisition"), was impaired. At the time of filing of the Original Form 8-K, the Company was unable to provide a reasonable estimate of the amount or range of amounts of the impairment charge. The Company is filing this Form 8-K/A to amend the Original Form 8-K to update the disclosure therein under Item 2.06.

As previously disclosed in the Original Form 8-K, the Company based its conclusion of a potential goodwill impairment charge from the initial results of its annual strategic planning cycle and preliminary findings in connection with the Company's annual goodwill impairment testing. On January 17, 2008, the Company determined that the goodwill impairment charge related to its ATI Acquisition would be approximately $1.3 billion. In addition, as a result of this goodwill impairment, the Company also performed an analysis of the potential impairment of identifiable intangible assets acquired in the ATI Acquisition. The Company concluded that approximately $350 million of the current carrying values of certain acquired identifiable intangible assets was impaired. The Company will not be required to make any current or future cash expenditures as a result of these impairments. These impairment charges will be reflected in the Company's financial statements as of and for the fiscal quarter and year ended December 29, 2007.

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