AMD-ATI Merger on the Way?
miketronics writes "Forbes.com is reporting the possibility of a merger between industry heavyweights AMD and ATI. This is largely based on a 'prediction on recent checks in the PC food chain' by industry analyst Apjit Walia. A move like this might give AMD some leverage over Intel, who has been slashing prices lately to compete with a major surge in AMD popularity in both the home and server markets. Despite AMD's recent gains Intel still has a dominant market share and consumers have high hopes for their upcoming Conroe processors."
All I can think is why AMD ins't looking at nvidia instead? If I had my choice of companies to chose from, it wouldn't be ATI.
... Intel is very dependant on ATI at the moment to supply intel CPU compatible chip-sets/Motherboards to help Intel move it's stock pile of CPUs. As Intel has a chip-set shortage which means it can not shift CPU's as fast as it would likes. (almost every new CPU requires a new MB).
*IF* AMD bought ATI they could immediately can the ATI Intel motherboard line and deliver a big blow to intel's profitability for the next quarter or two.
AMD doesn't need ATI's tech or headaches. The best chipsets for AMD's systems currently come from Nvidia; why would AMD want to piss them off?
Nvidia's founder worked at AMD in the 80s and the 2 companies have a pretty close relationship. I can see a merger with Nvidia making sense, but buying ATI would be a blunder.
Jesus used to be my co-pilot, but we crashed in the mountains and I had to eat him.
AMD has their own chipsets, they're not buying ATI for that. The thing that AMD doesn't make of their own is integrated graphics chipsets. Intel is the largest vendor of graphics hardware (they either beat NVIDIA and ATI combined, or they come close to it). With Windows Vista coming out and requiring a GPU for Aeroglass, it totally makes sense for AMD to start producing integrated graphics solutions.