NEWS
NEWS
NEWS
Chip maker Advanced Micro Devices, Inc (AMD) is reportedly looking to make some changes to its corporate structure so it can better compete with Intel. According to Reuters, AMD wants to split or spin-off part of its business so it can devote more resources to combating its biggest rival.
Interestingly, rather than simply saying “no comment” on the reports, AMD’s spokesperson Sarah Youngbauer pointedly denied the rumors, telling ExtremeTech that: “While we normally would not comment on such a matter, we can confirm that we have no such project in the works at this time. We remain committed to the long-term strategy we laid out for the company in May at our Financial Analyst Day.”
According to eWeek, AMD is planning to sacrifice the market for low-end PCs, smartphones and IoT devices, and instead focus on gaming, immersive computing and data center infrastructure as the foundation of its recovery plan. The idea is to leverage its expertise in high-performance CPUs and GPUs, visualization and power efficiency, while taking advantage of new technologies like high-bandwidth memory.
Reuters said in its report that AMD might consider splitting its enterprise and CPU business from its graphics and licensing business. The company has mulled that idea over before, but it refrained from doing so. But that option may now be back on the table.
However, doing so would have consequences, namely counteracting the 2008 merger between AMD and ATI Technologies that allowed AMD to start integrating high-quality graphics processors into its CPUs. This led to AMD developing the Accelerated Processing Units (APUs) that have been used to power the Sony PlayStation 4 and Microsoft’s Xbox One, among other devices. WCCFtech‘s Khalid Moammer argues that by splitting its two major businesses, AMD would essentially return to where it was pre-2008, meaning it would have to devote more resources towards both of them.
“However it may also give the two branches of the company a more razor edged focus to innovate,” Moammer wrote. “But when it comes down to it, I’d personally would argue that if a breakup is warranted now, then a merger 7 years ago was not.”
Last October, AMD said it was planning to shed seven percent of its workforce – approximately 700 people – in order to curb expenses. At the time of that announcement, AMD CEO Lisa Su said the company would rake in about $1 billion in new revenues from its new customized chips line over the next three years.
Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.