Just a few days ago, a report from the South Korean media display, Samsung is considering the acquisition of a traditional chip designer AMD. Considering this is not the first time rumors have plans to buy smartphone maker AMD, so we should not be too surprised by this information.
South Korea does not provide any detailed details, we do not confirm or find other relevant information to confirm this rumor. Korean media pointed out, held a press conference confirmed that there are not many details of the message before the final announcement of Samsung and AMD.But it is certain that Samsung is indeed very interested in the acquisition of AMD, the purpose is to better compete with Intel, Nvidia and other opponents, (intellectual property) increased by AMD's CPU and GPU IP opportunity to let themselves in a more favorable position.
Samsung eager to expand chip business
, Samsung is the world's first 14nm mobile processors have first vendor, its Exynos 7420 is already in production for the new flagship Galaxy S6 and S6 Edge. Earlier we mentioned reports, Samsung not only to reduce external vendors to support their own, but also trying to become the other smartphone manufacturers most dependent on big business, especially the chip business.
Samsung's business expansion in the chip market faster and faster. In addition to using the most advanced technology in the field of mobile manufacturing Apple's next-generation 14nm FinFET get orders outside A9 chip, the latest rumors also show that Qualcomm forced to relieve the negative impact of the chip overheating might consider the future will choose the Samsung 14nm chip as the main supply providers, but also from the 2015 second quarter business. Thus, the largest market share in the mobile space Qualcomm, the status will soon be replaced by Samsung.
AMD is Samsung "acquisition" is not the first time
early in 2007, when an official statement on the Samsung already mentioned, the company's acquisition of AMD is "necessary" to protect the business grew rapidly. While this statement did not take effect, but then the same story every year more and more likely, such as "Microsoft's acquisition of Nokia's" stories like a reality, AMD will also become a Korean company.
After the acquisition of Samsung AMD, not only can get the processor hardware technology, while AMD had fought over the years accumulated patent portfolios, Samsung will also be income in the bag. As a result, Samsung's chip business in addition to the future of mobile devices, but also can penetrate into the server, desktop and notebook market, and can automatically immune patent battle rival Nvidia or Intel attacks from further development for Samsung's chip business, paving the way.
But having said that, we do not know if Samsung is really after the acquisition AMD, the impact on the PC industry. Over the years, Intel and Nvidia, AMD has been secretly supporting development, especially in the planning of deliberately slowing down the line chart, so we consumers can clearly feel the fierce market competition, the pseudo-alternative products better.Samsung AMD after the acquisition if it is incorporated into the mobile phone sector, while the GPU and CPU to stop related business, the market reaction will happen then.
So AMD should sell themselves?
Although AMD is trying to survive in the PC chip market, but the whole PC chip industry is facing growing mobile chip makers threat due to lack of sufficient revenue lead to AMD is difficult to solve this problem. Before benefited PlayStation 4 and Xbox One of the big list, AMD seems to get a major victory, in fact, revenues and profits still further reduced.
AMD announced the beginning of the year 2015 financial report shows that the fourth quarter of 2014 AMD revenue $ 1.24 billion, down 22%, the chain fell 13 percent, a loss of $ 364 million, up $ 2.21 billion of debt levels.
Solve financial problems is one of the biggest reasons for AMD to be acquired, and acquired by Samsung and even help their products more conducive to competition. As we all know, a long time back-up craft AMD OEM cooperation rather backward, the gap between performance and power consumption without independent technology node between AMD and Intel chips widening.
More importantly, Intel's X86 mobile chip proof, traditional desktop chip plant can blatantly campaign mobile market, because Intel into the mobile market leader in technology are still at least a generation ARM chip manufacturers. The foundry partnership with AMD lagging process nodes and do not pay attention to their orders, so AMD in the mobile market, there is no chance.
Moreover, in competition with Nvidia's AMD graphics business is always belated, in addition to the price of the remaining difficult for consumers to whom tempted. To make products more competitive, AMD needs cutting-edge process nodes, employing large chip engineers, but only requires sufficient funds to do research backing, and the financial strength of Samsung's nothing more than the ability to provide the most powerful investment to help AMD solve All financial problems, and even more advantages in marketing and brand promotion.
Samsung acquisition of AMD meaningful?
Of course, we also need to come back around and consider another question, but what Samsung AMD acquisition value? Intel last year, the answer is no given. Intel last year that if there is a large enterprise which sees AMD's talent, despite dig, provide better benefits than AMD and salary is a good thing for them.
Was widely believed that little intellectual value of AMD, but also saddled with huge debt of hundreds of millions of dollars, from a financial and business point of view, there will not be any business of its interested. In addition, since AMD trouble, major companies including Apple, Qualcomm has lured a lot of talent from AMD, Samsung will AMD CPU team in Austin package, most of the chip architect. In other words, the lack of talent AMD acquired equally unattractive.
However, a few days ago there were indications that the South Korean giant has really started its own CPU core design work and identify recent debut. Samsung's mobile chip ARM core infrastructure is authorized, that the public version of the program directly to AMR packaging. With Samsung's chip business ambitions expanded step by step, the acquisition of AMD but also help develop their own CPU core, and long-term use of the ARM Mali GPU can also be replaced by AMD GPU, in the high-end mobile chip market to the fore. Relative to Apple, A family of chips designed only CPU core, GPU PowerVR are still using products from Imagination Technologies Corporation.
In addition, Intel and Samsung have to compete in a number of areas, particularly in today's highly competitive mobile space. Intel to enter the mobile space has been two to three years, has been funded by subsidies Atom chip sales this year, released the latest update Atom X3, X5 and X7, to help consumers quickly understand the processor performance, facilitate accurate positioning of product marketing activities, which means that Samsung had to reduce profit margins to remain competitive.
Samsung acquisition of AMD CPU and GPU IP inevitable as a very powerful weapon. Last September, Nvidia GPU accused Samsung of infringing its own patent covering programmable shading, unified shaders and multi-threading parallel processing technology. AMD's acquisition of Samsung's most Ati availability of GPU IP, through this eight years ago has begun against Nvidia help quickly resolve legal disputes.
Summary
In summary, AMD will sell itself to Samsung, will receive significant financial support to achieve more ambitious goals, as well as a more powerful marketing campaigns, cutting-edge chip technology nodes, as well as the broad mobile market prospects.
Samsung through the acquisition of AMD, Samsung will receive a full chip design company to help independent chip, while access to AMD's leading x86 architecture and high-performance GPU architecture, including the highly anticipated performance "Zen" CPU architecture, 64-bit ARM " K12 "kernel and the upcoming release of" Arctic Islands "GPU architecture.
AMD has always had cross-licensing agreement with Intel, which Intel x86 licensed to AMD, AMD provides the Intel x86 64bit authorization, Samsung acquired AMD is a violation of the agreement in principle yet? Of course, no matter how beneficial the acquisition of both companies, is currently no confirmed this rumor Samsung and AMD has not been given, if there is no next action "agricultural enterprises" is still worth looking forward to the big companies, especially independent of the server market.
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