AMD / ATI merger looks like it could be on

Written by Tim Smalley

July 21, 2006 | 15:22

Tags: #business #chip #chipset #consumer #digital #handheld #merger #platform #share

Companies: #amd #ati #intel #nvidia

The AMD / ATI merger looks like it could happen after all.

A number of reports have popped up on the 'net in the last few hours, suggesting that AMD and ATI have agreed a merger deal, which is set to be announced on Monday.

We have had a number of reliable sources close to the two companies indicating that the deal has been done, and it is awaiting the approval of the share holders from both parties.

The Inquirer believes that AMD doesn't have the money to buy out ATI's share holders, but there are no details of what the deal entails at the moment - we will have to wait until Monday to find that out.

If the deal goes through, it will have interesting implications for NVIDIA. The Santa Clara chip designer has been AMD's number one supplier of chipsets over the years. With ATI moving under AMD's wing, ATI's chipset division will become the supplier of the primary chipset for AMD platforms.

Having said that though, NVIDIA has its own platform initiatives going on under the SLI moniker. NVIDIA is unlikely to open its technology up to either Intel or AMD (ATI) chipsets, so there will still be plenty of demand for NVIDIA chipsets, providing the graphics chips continue to be industry-leading.

Other technologies that AMD is keen to get hold of are ATI's integrated graphics, handheld and digital consumer businesses. All three have been very successful businesses for ATI, with handheld being one of ATI's most profitable business ventures.

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