Advanced Micro Devices announced the largest acquisition in its history Monday, paying about $5.4 billion to acquire graphics chip specialist ATI Technologies. The acquisition will let AMD expand its position in the commercial desktop and mobile computing markets, two areas where the company has not had much success.
In addition to accelerating the company's x86 processor market share battle with Intel, the acquisition will expand AMD's access to manufacturing capacity and will lead to products that will integrate both microprocessors and graphics engines in a single chip in future releases.
"Together we intend to create a processing powerhouse," said Hector Ruiz, chairman and chief executive of AMD, during a teleconference to announce the deal. "We are confident the companies will integrate well together. We believe that as technology advances, integration is not only inevitable, but also advantageous."
Beginning next year, the companies will market "customer-centric platforms" using AMD and ATI technologies that will include all existing product offerings. Beginning in 2008, AMD plans to introduce platforms that integrate general purpose processors and graphics engines to meet specific media, data, and graphic requirements, says Dave Orton, president and chief executive of ATI.
Bob Rivet, CFO of AMD, says the acquisition is expected to be completed by year's end. The purchase is a combination of $4.2 billion in cash and 57 million shares of AMD stock.
Subsea cable alternatives can provide a level of comfort for those concerned about disruptions. Realistically, they will continue to play a small, but critical role in the short term.
Maintaining existing network infrastructures often incurs huge technical debt before newer technologies are adopted over time.
Amid ongoing regional uncertainties, telecom infrastructure in the Middle East has expand to include terrestrial low-latency network infrastructure, which offers resilience and agility in navigating political complexities without relying solely on undersea networks.
