Friday, November 27, 2015
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
LG Display Makes Huge Investment in OLED Panels
Sony To Bring Remote Play Feature To PS4
MINIX NEO U1 Media Hub for Android Coming Next Week
Samsung Joins Audi’s Progressive SemiConductor Program
German ISPs May Block Music-sharing Sites: court
Study Says HTTPS Certificate and SSH Key Reuse Endangers Millions of Devices Worldwide
SK Hynix Rejects Chinese Take-over Offer
New Huawei Mate 8 Smartphone Launched With Kirin 950 Inside
Active Discussions
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
How to burn a backup copy of The Frozen Throne
Help make DVDInfoPro better with dvdinfomantis!!!
Copied dvd's say blank in computer only
menu making
Optiarc AD-7260S review
 Home > News > General Computing > AMD to ...
Last 7 Days News : SU MO TU WE TH FR SA All News

Monday, July 24, 2006
AMD to Acquire ATI Technologies

In a transaction that will reshape the semiconductor industry, AMD agreed to buy ATI Technologies Inc. for $5.4 billion in cash and stock, according to an official press release issued today.

The deal comes as the semiconductor industry is becoming the focus of intense investor interest. Later this week, Philips Electronics plans to field final bids worth more than $10 billion apiece for its semiconductor division from three consortiums of private equity investors, people involved in that auction said. Philips had been considering an initial public offering for the unit.

A.M.D.'s deal for ATI, worth $4.2 billion in cash and $1.2 billion in stock, will expand A.M.D.'s business into graphic chipsets used in high-end PC's for playing video games and in workstations used in design work or to create video games and movie animation as well as chipsets for cellphones and handheld devices.

A chipset connects a computer system's processor to its memory and other parts, facilitating the flow of data among components.

"ATI shares our passion and complements our strengths: technology leadership and customer centric innovation," said AMD Chairman and CEO Hector Ruiz. "Bringing these two great companies together will allow us to transcend what we have accomplished as individual businesses and reinvent our industry as the technology leader and partner of choice. We believe AMD and ATI will drive growth and innovation for the entire industry, enabling our partners to create differentiated solutions and empowering our customers to choose what is best for them."

In 2008 and beyond, AMD aims to move beyond current technological configurations to transform processing technologies, with silicon-specific platforms that integrate microprocessors and graphics processors to address the growing need for general-purpose, media-centric, data-centric and graphic-centric performance.

AMD's current executive team will be complemented by the addition of ATI President and CEO Dave Orton. Orton will serve as an executive vice president of the ATI business division, reporting to the AMD Office of the CEO, comprised of Chairman and CEO Hector Ruiz and President and Chief Operating Officer Dirk Meyer. In addition, under the terms of the acquisition agreement, two ATI directors will join AMD's board of directors upon closing of the transaction.

"The deal puts A.M.D. on more equal footing with Intel," said Samir Bhavnani, director of research at Current Analysis, a market research firm in San Diego."It completes the puzzle for A.M.D."

He said the deal was important because it took A.M.D. beyond PC's and gave it greater strength for the cellphone and handheld markets.

The deal is not without challenges. While both companies have reported strong earnings growth over the past year, overall growth of PC sales is slowing, particularly in the high end of the market, where the graphics chips are important components.

The slowdown also means the price competition with Intel for the core processors at the low end of the market has increased. Lower prices mean that A.M.D. makes less money per processor.

The ability to sell graphics chipsets along with a processor could help improve A.M.D.'s overall gross profit margins, which fell in the latest quarter to 56.8 percent from 58.5 percent in the prior quarter.

ATI is a major player in a number of promising technologies that will grow as the electronics industry shifts away from the dominance of PC's to new forms of television, enhanced set-top boxes as well as handheld videoplayers. For instance, ATI makes chips that enable integrated digital televisions, which get digital broadcast over the airwaves. The company also makes image processors that are used to display video on cellphones or mobile handheld game machines.

In its third quarter, ended May 31, ATI reported that revenue from the consumer side of its business grew 120 percent year-over-year due to strength in the handhelds market. Shipments of chips for the digital television market more than doubled. By contrast, its revenue from chips used in PC's increased only 8.5 percent from the year earlier quarter.

Philips Semiconductors was ranked as the world's eighth largest semiconductor maker in 2005 by iSuppli, a market research firm. With revenue of $5.7 billion, it claimed 2.4 percent of the overall semiconductor market. A.M.D. was ranked slightly behind it. ATI was ranked as No. 25 with almost $2 billion in revenue and a market share of 0.8 percent, iSuppli said.

Microsoft Confirms Zune Media Player        All News        Optical media Company Sponsors T-Shirt Design Competition
Microsoft Confirms Zune Media Player     General Computing News      Yahoo Trials DRM-free MP3 Downloads

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
AMD Ends Driver Support For Radeon HD 5000 and 6000 series
New AMD Radeon Software Crimson Edition Available For Download
AMD Radeon R9 380X Released
AMD Offers Free Star Wars Battlefront With Radeon Fury Cards
AMD Gained Market Share Over Nvidia In Q3
Sony Brings Playstation Vue To Amazon Fire TV, Fire Stick And Google Chromecast
Imagination Extends the MIPS Warrior CPU Family
Disney And ESPN Media Networks Lineup Coming To Sony's Playstation VUE
AMD Replaces Catalyst With New Radeon Software Hub Crimson
AMD's 'Arctic Islands' GPUs On Track For 2016 Release
AMD Releases New Embedded R-Series Processors
AMD To Form Joint Venture With Nantong Fujitsu Microelectronics On Semiconductor Assembly and Test Operations

Most Popular News
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .