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.