News
 

Bookmark and Share

(28) 

Advanced Micro Devices, the world’s second largest maker of microprocessors, reportedly has reached agreements with ATI Technologies in regards the acquisition of the latter. No details are known, but this is the second time when rumours concerning the acquisition break out in the last several weeks.

“On the July 4, a person close to the negotiations revealed that AMD has reached a purchase agreement with ATI, the news will soon be officially announced,” a news-story at Chinese web-site Sohu.com reads.

Early in June an analyst with RBC Market Capitals said that he would expect AMD to acquire ATI Technologies, as he thought it was consistent with AMD’s plans to expand capacities. Acquisition of ATI would give AMD a strong team of engineers and rich product portfolio not only consisting chipsets and graphics processors, but also chips for consumer electronics, mobile phones and even technology licensing agreements with Microsoft Corp. and Nintendo. But while AMD would gain ability to offer all-in-one platforms, like Intel Corp. does, acquisition of a quite a big company may impact AMD’s ability to spend on boosting its manufacturing capacities or developing new technologies.

There a lot of differences between AMD and ATI as well. If the former has been concentrating on development and manufacturing of microprocessors, gradually withdrawing from any other markets, the latter has been trying to enter broader markets with its various products, which are built by third party manufacturers, such as Taiwan Semiconductor Manufacturing Corp. (TSMC) or United Microelectronics Corp. (UMC).

At press time ATI’s market capitalization was $3.83 billion, market capitalization of AMD was $11.54 billion. Meanwhile, ATI had $607.03 million in cash, while AMD, who has been enjoying performance lead over Intel Corp. for several recent quarters, had $2.63 billion in cash.

ATI denied to “comment on rumours”.

Discussion

Comments currently: 28
Discussion started: 07/07/06 01:33:40 PM
Latest comment: 08/28/06 12:56:25 AM

[1-1]

1. 
I think the purpose of this is to cut into Intel's business because Intel uses ATI chipsets in their budget motherboards. Buying ATI would allow AMD to deny Intel (or any mobo maker that uses Intel sockets) ATI chipsets which could give AMD an advantage on the lower end. Waste of time for AMD.

I think my Sempy 3400+/GeForce 6200 still rocks :)
0 0 [Posted by:  | Date: 07/10/06 01:17:07 PM]
Reply

[1-1]

Add your Comment




Related news

Latest News

Tuesday, July 22, 2014

4:08 am | Microsoft to Unify All Windows Operating Systems for Client PCs. One Windows OS will Power PCs, Tablets and Smartphones

Monday, July 21, 2014

10:32 pm | PQI Debuts Flash Drive with Lightning and USB Connectors. PQI Offers Easy Way to Boost iPhone or iPad Storage

10:08 pm | Japan Display Begins to Mass Produce IPS-NEO Displays. JDI Begins to Mass Produce Rival for AMOLED Panels

12:56 pm | Microsoft to Fire 18,000 Employees to Boost Efficiency. Microsoft to Perform Massive Job Cut Ever Following Acquisition of Nokia

Tuesday, July 15, 2014

6:11 am | Apple Teams Up with IBM to Make iPhone and iPad Ultimate Tools for Businesses and Enterprises. IBM to Sell Business-Optimized iPhone and iPad Devices