Advanced Micro Devices Inc. reported worse-than-expected earnings Thursday thanks to a $65 million inventory write-down, but shares gained as the struggling chipmaker announced a new joint venture for manufacturing. The company reported a loss of 25 cents a share on revenue of $1.06 billion, and an adjusted loss of 17 cents a share. The inventory writedown, which AMD said was related to older processing units that are no longer in demand, cost the company 8 cents a share, AMD said. Analysts polled by FactSet expected adjusted losses of 12 cents a share on sales of $996 million. AMD detailed a new joint venture with China’s Nantong Fujitsu Microelectronics Co. Ltd. for manufacturing, with NFME paying AMD $371 million in cash and taking an 85% ownership stake in the operations of AMD’s factories in Penang, Malaysia and Suzhou, China. The move is ostensibly part of cost cuts announced earlier this month for the Sunnyvale, Calif., chip company, which included the second round of job cuts in less than a year under CEO Lisa Su. AMD shares gained about 2% in late trading after closing with a 0.5% gain at $1.96.
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