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Dell Acquisition Start Of AMD Relationship, Says Analyst

SAN FRANCISCO — A prominent semiconductor industry analyst Wednesday (March 22) characterized Dell Inc.'s proposed acquisition of high-end PC supplier Alienware Corp. as a way for the computer giant to "back its way" into a relationship with Advanced Micro Devices Inc.

For months, rumors have persisted that Dell is seeking to develop servers based on AMD microprocessors, a move that would strike a blow to Intel Corp., which has been Dell's only provider of processors. But to date, Dell has yet to offer any product based on AMD processors.

Miami-based Alienware offers a wide range of systems featuring both Intel and AMD processors.

The deal, according to Doug Freedman, senior analyst at American Technology Research Inc., gives Dell access to a highly skilled design team — one that is familiar with AMD chips.

"I think this is the start of a relationship [between Dell and AMD]," Freedman said.

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