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Monday, July 24, 2006

Will AMD become more like Intel?

A.M.D. to Acquire ATI Technologies - New York Times

Now that AMD has entered the graphics arena, will they begin to make integrated chipsets? Or is this just a move to enter the lucrative HDTV and portable device market? ATI has long been a favorite with Apple computer. Will Intel's primary (only) rival acquiring ATI affect that relationship? Or will this increase the likelihood of Apple using AMD chips in the future? Many Mac fans were offended (to put it lightly) that Apple chose Intel over AMD, but AMD has no chipset offerings to match Intels, regardless of how superior their chips may be.

The personal computer market is mature. The HDTV and portable device markets are still in the growth phase. They're highly competitive, but component providers such as ATI/AMD can do well. That more than anything else may be behind AMD's desire to acquire ATI. As Intel's primary competitor AMD has done remarkably well, but profits are dropping. Spreading into other, growing markets makes good sense. Only time will tell if the video processor market is the right market, but at this point, it looks like a good one.

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