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Saturday, June 20, 2015
AMD Considers Spinoff, Breakup: report


Advanced Micro Devices (AMD) is reportetdly reviewing whether to split itself in two or spin off a business, seeking to better compete with Intel.

No desicion has been made yet, Reuters reported, citing "three people familiar with the matter." But the company has asked a consulting firm to help it review its options and draw up scenarios on how a break-up or spin-off would work, the people said. One option under consideration is separating AMD's graphics and licensing business from its server business.

Last month, AMD outlined a long-term strategy that included no such plans, during an analyst meeting.

AMD has competed with larger Intel on PC and server chips. But also the company has an extensive cross-licensing agreement with Intel.

During the last years, the company has not managed to catch up with the market demand for low-cost and power-efficient chips. The company is now shifting its focus to gaming consoles and low-power servers to combat falling laptop sales.



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