Cash strapped chipmaker AMD has had to apply for a short term loan to help the company slow its financial decline. The outfit has raised half-billion dollar line of finance from a group of lenders, with Bank of America acting as agent.

All this is happening as AMD struggles with the economic downturn and a decline in PC sales. The outfit is good for the cash. After all it is focusing on game consoles and associated royalties, which at its fiscal third-quarter earnings saw the business unit increase in revenue by 110 percent on the previous quarter, and 96 percent year-over-year.

AMD said the proceeds of the five-year secured revolving line of credit, ending November 2018, which retires may be used for general corporate services, such as working capital needs.