AMD (Sunnyvale, Calif.) will own 34.2 percent of the venture, down from the previously announced stake of about 44 percent, the company said. The change in the size of AMD's stake is due to a write down in the value of the manufacturing assets that AMD is contributing to the venture, the company said. ATIC will now own 65.2 percent of the venture, according to AMD.

ATIC will still invest $2.1 billion to purchase its stake in the venture, currently known as The Foundry Co, AMD said. Of this, $1.4 billion will be invested directly in the new entity and $700 million will be paid to AMD, according to the company.

The joint venture was announced in October, when AMD said it would obtain an investment of up to $8.4 billion from the Abu Dhabi government and divest its manufacturing operations.

Under the amended terms of the agreement, Abu Dhabi's Mubadala Development Co., which last year acquired an 8.1 stake in AMD, will purchase 58 million shares of AMD's common stock at a revised purchase price. The revised purchase price will be either the average closing price per share of AMD's common stock on the New York Stock Exchange during the 20 trading days prior to Dec. 12, or the average closing price per share of AMD's common stock during the 20 trading days immediately prior to the closing date of the transaction, whichever is lower, AMD said.

AMD said it would issue to Mubadala an additional 5 million warrants to purchase AMD stock, for a total of 35 million warrants.

The transactions covered by the amended agreements are expected to close at the beginning of 2009, AMD said.

Last week, AMD lowered its guidance for the fourth quarter, saying it expects revenue to decline about 25 percent sequentially.