Tuesday, January 24, 2017
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Google Releases New Chromebooks For Schools
Microsoft Announces Intune for Education And New Windows 10 PCs for School
Razer Updates The Razer BlackWidow Mechanical Gaming Keyboard
Europe Seeks Feedback on Commitments Offered by Amazon in e-book Investigation
Yahoo Sees Verizon Deal Closing in Second Quarter
Samsung Electronics Confirms High Q4 Profit on Record Chip Performance, Predicts Lower Figure in Q1
LG Display Reports Stellar Q4 Earnings And Profit
Pioneer BDR-S11J-BK BDR-S11J-X Ultra HD Blu-ray Burners Coming Next Month
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > PC Parts > AMD Gam...
Last 7 Days News : SU MO TU WE TH FR SA All News

Tuesday, August 01, 2006
AMD Gambles on ATI Route to New Markets


AMD hopes its acquisition of ATI will help drive growth in new markets. But AMD faces significant risks to its execution. Its graphics rival nVidia is likely to prevail through 2008.

On 24 July 2006, AMD announced that it has agreed to acquire ATI for $5.4 billion in cash and shares. The deal is expected to close during 4Q06.

AMD is betting that having graphics and chipset capabilities in-house will enable it to take market share from Intel. On completion of this deal, AMD will be able to offer AMD-branded systems that compete directly with Intel?s platform chipsets and packages and, in the long term, enable it to develop highly integrated graphics and processor silicon. AMD has promised tangible results from this deal during 2007, which we anticipate will include a system-in-package design for notebooks. Such integration will deliver longer battery life than is offered by AMD?s current solution.

AMD has long extolled the virtues of its not being a chipset provider. This acquisition will inevitably alienate partners nVidia, SiS, Via and Broadcom. Intel could take advantage of this situation and put pressure on AMD by helping nVidia capture a larger share of graphics revenue associated with Intel-based systems.

ATI's business within the highly competitive markets for cell phones and digital TV devices will also pose a challenge for AMD. However, AMD has identified an opportunity to add value to ATI's offerings by bringing x86 capabilities to this market. AMD's decision to acquire ATI was motivated in part by AMD's belief that half of the world's population should have Internet connectivity by 2015, which has led to AMD's 50x15 initiative.

Overall, acquiring ATI is a risky bet for AMD. Its market share gains must be large enough to make up for the high price of the acquisition, the attrition of ATI?s Intel-related business, declining margins in a consolidating PC industry, and the risk that the consumer electronics business it has acquired with ATI may languish in the shadow of AMD's focus on microprocessors

Gartner analysts recommend PC and server buyers to take no action, as the acquisition will not have any immediate effect on product portfolios from leading PC suppliers.

PC vendors should expect Intel to provide more support for nVidia technologies, such as the double graphic card SLI technology.

Partners in consumer electronics should monitor ATI's product road maps for signs of changes in its long-term commitment.


Previous
Next
IBM to Use AMD Processors in New Servers        All News        EVGA Introduces the Water Cooled EVGA e-GeForce 7950 GX2
IBM to Use AMD Processors in New Servers     PC Parts News      NEC Develops New Design Method for High Speed LSI with More than 50 Million Transistors

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

Related News
VR-capable Imagination Series8XE GPU is Targeted At Low-end Smartphones
AMD Outlines New Vega Graphics Architecture
AMD Showcases PCs and AM4 Motherboards Ready for Ryzen
AMD Radeon FreeSync 2 Technology Brings High Dynamic Range Gaming to PC Displays
New Ryzen CPU Could Give AMD A Better Market Share In 2Q17
AMD Ryzen Processors Detailed; They Are Smart And Powerful
Sony Leads The VR Market
AMD Announces Radeon Instinct GPU Accelerators for Deep Learning
Radeon Software Crimson ReLive Edition Brings Support For Chill, Along With New Features
Could Future Intel Chips Have AMD Graphics Inside?
Imagination And DENSO Are Teaming Up On Automotive
Free Game Bundles For GeForce and Radeon Graphics Cards

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2017 - All rights reserved -
Privacy policy - Contact Us .