It is expected that today (July 24), the world’s second-largest computer processor supplier – AMD will announce the acquisition of graphics chip manufacturer ATI Technologies Inc. for $5.5 billion.
This merger is seen as a significant move to boost the current chip industry, especially as AMD and its long-time rival Intel are engaged in a close competition for market share. Additionally, Nvidia Corp. is also a major contender in this battle.
In fact, rumors about AMD’s potential acquisition of ATI have been circulating since last May, but industry analysts expressed skepticism regarding this possibility, citing unclear strategic vision and financial capability for AMD to acquire ATI. It is known that ATI is a large supplier of chipsets for both AMD and Intel products.
Analysts also suggest that the price AMD has to pay for acquiring ATI may exceed the initial $5.5 billion estimate. It is also known that AMD is planning to invest approximately $5 billion in production lines over the next few years. The company is facing strong competition from Intel, a formidable rival in the chip manufacturing market.
