Samsung Plans To Buy AMD To Compete With Intel [REPORT]

Intel LogoBy The original uploader was VD64992 at English Wikipedia [Public domain], via Wikimedia Commons

Intel is already struggling to make a mark in the mobile chip segment, and the latest reports could make the struggle much harder for the chip maker. Samsung is reported to be planning to acquire AMD to compete against companies such as Qualcomm and Intel.

How Samsung could exploit AMD’s potential

According to South Korean media reports, Samsung is interested in AMD’s CPU and GPU properties and using AMD’s IP to ramp up its growth and stand against companies such as Intel and Qualcomm. If the story holds true, then there will be some great products coming from it. The Korean company could launch Radeon IP in its mobile offerings to boost its performance.

The acquisition of AMD would not just bolster the position of Samsung in the patent battle but also help the company stand stronger in the face of competition considering the strong product pipeline of the chip maker. AMD has a slew of releases, such as its high-performance x86 Zen’CPU’s, 64bit ARM K12? Core and the upcoming Arctic Islands graphics architecture.

Another area in which the company could use AMD technology is for enhancing its fabrication by shifting technology into smaller processes which could be better than what TSMC offers AMD at the moment.

Better placed among rivals such as Intel, NVIDIA

Samsung and Intel have crossed paths in the past, with Intel trying to expand into the mobile market by subsidizing Atom sales, thus forcing competitors to bring down their prices to stay competitive. Samsung’s acquisition of AMD’s CPU and GPU IP could earn Samsung a very strong position in the market and also in the courts.

Samsung could also make some changes in the GPU arena and compete against NVIDIA. The major graphic contributor of AMD is ATi, a company that was set up almost eight years before NVIDIA was started. The acquisition would grant Samsung an extra eight years in the patents battle with NVIDIA.

Further, the reports mention that Samsung has been eyeing AMD since 2007, the same year Samsung’s head of telecommunications reportedly said, “It is necessary to consider the AMD acquisition in order to secure a new growth engine.”

It is a big development, and if it materializes, it will be a big success for the Korean company.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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