Advanced Micro Devices (AMD), the popular computer chip maker and second to Intel, has bought ATI Technologies for 5.4 billion dollars. The Canadian company (ATI Technologies) was one of the top companies that produced graphics processor units and 3D Graphics cards.

I think that AMD’s aquisition will do the company much good. AMD now looks to expand from its focus of micro proccessors to graphics cards, chipsets, and electronics. Here is AMD’s vision:

In 2007 AMD is looking to create innovations that are targetted to specific industries. It will also look to create products that are diverse but specific to different customers’ needs.

In 2008 AMD hopes to totally transform the technologies we see today by producing silicon specific products that place together processing and graphic chips together which can be used for different purposes.

To fund the buying of ATI, AMD had 3 billion dollars in cash and cash equivalent assets, but then needed to go out and get a 2.5 billion dollar loan (ya just the small loan I take out when visiting the bank down the street).

I think this deal is great for both AMD and ATI. I think AMD now can push harder against Intel and ATI now can produce better graphics controllers. I also believe that AMD will begin to push ATI graphic cards on computers that use AMD chips which will give those computers a 1-2 punch.

This entry was posted on Monday, July 31st, 2006 at 6:43 pm and is filed under Tech News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.