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[dvhw] AMD may split in two firms

post #1 of 38
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Quote:
Rumours are out on Wall Street that AMD may be split into two companies. AMD hasn't announced any details yet about the "asset-smart" strategy it plans to follow but analysts speculate the firm will split into a CPU/GPU/chipset development firm and a semiconductor foundry:
According to a news-story by 247wallst.com web-site, there are rumours on the market claiming that Advanced Micro Devices may be split into two companies, one of which would concentrate on contract chip production and another would focus on development of microprocessors, graphics processing units, multimedia chips, core-logic sets and some other products. The rumour has been circulating for some time now, moreover, about half a decade ago AMD already admitted that it would make chips for its partners on a contract basis if it has enough manufacturing capacities.

Currently AMD is struggling to deliver competitive central processing units (CPUs) and also to manufacture them using latest process technologies on time. In addition, the company has to develop GPUs, chipsets and other products, which are made by contract semiconductor makers Taiwan Semiconductor Manufacturing Co. (TSMC) as well as United Microelectronics Corp. (UMC).

Theoretically, splitting the company into two would allow the independent firms to become more competitive since the contract manufacturing unit would get finances from outside AMD. However, for a maker of x86 CPUs it is crucially important to tailor state-of-the-art fabrication technologies for microprocessor design, something which may not be truly possible in case of bulk process technologies at a contract maker. Additionally, splitting the company into several units would not particularly fit into “asset-smart†strategy.

Source
post #2 of 38
10 bucks say if this is true, they split into a cpu division and a gpu division. Oh the irony.
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post #3 of 38
Man, I want to be optimistic about AMD, I want them to come back in the game, but they really seem to be heading down the drain. Why did they have to buy ATI, and why did they have to release the damned crappy Phenoms?

Somebody in management doesn't know what they are doing
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post #4 of 38
Um AMD buys ATI, now they split up again. Amusing.
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post #5 of 38
Quote:
Originally Posted by joemaniaci View Post
10 bucks say if this is true, they split into a cpu division and a gpu division. Oh the irony.
They would split up into a CPU/GPU/chipset development company and a manufacturing company. The point of buying ATI was to help with the chipset development and the creation of an AMD platform. I don't think AMD ever really liked manufacturing the CPUs, only designing them.
post #6 of 38
Quote:
Originally Posted by dejanh View Post
Man, I want to be optimistic about AMD, I want them to come back in the game, but they really seem to be heading down the drain. Why did they have to buy ATI, and why did they have to release the damned crappy Phenoms?

Somebody in management doesn't know what they are doing
Quote:
Originally Posted by cuy50 View Post
Um AMD buys ATI, now they split up again. Amusing.
RTFA.

It explicitly states CPU/GPU and semiconductor.
    
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post #7 of 38
Hmm maybe one does the hardware and the other does the drivers?
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post #8 of 38
Hmm, since AMD is splitting up, maybe Intel will buy ATI? *wet dreams*
post #9 of 38
NOBODY READS ANYMORE!

It doesn't say the CPU and GPU sections will split. ATI's chipsets are of tremendous benefit to AMD right now. AMD WILL NOT LET GO OF ATI.

The article states they just might not make the chips anymore. Considering that IBM and AMD have developed their next manufacturing process jointly and TSMC does all their chipsets/ GPUs it doesn't really take a stretch of imagination to envision AMD's manufacturing and design as seperate entities.
    
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post #10 of 38
Quote:
Originally Posted by joemaniaci View Post
10 bucks say if this is true, they split into a cpu division and a gpu division. Oh the irony.
I was totally gonna pounce on that. Oh well, it was pretty much guaranteed somebody would beat me to it.
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