Jul 24, 2006

AMD to Acquire ATI

AMD intends to create a PC chip powerhouse to rival Intel.
Source: eWeek
Written by John G. Spooner

Advanced Micro Devices will acquire graphics processor maker ATI Technologies in an effort to emerge as a more formidable supplier of chips for business computers.

AMD has traditionally worked with multiple partners whose chips can be used with its processors to build PCs. But the company intends to use the tie-up, announced on July 24, to deliver more tightly integrated processors and supporting chip sets, in an effort to lure more businesses.

AMD has made strides with businesses of late, particularly in the server space. Its Opteron server chip has claimed more than a quarter of server processor shipments, thanks to partnerships with companies such as Hewlett-Packard, IBM and Sun. It has also won major PC deals. However the company—whose goal is to serve at least one third of the PC processor market in the future—says it still needs to do more to gain businesses’ loyalties in corporate PCs, a market where Intel continues to dominate.

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