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SAN FRANCISCO - Advanced Micro Devices Inc., said it will make a "significant" announcement Monday, amid news reports that Intel Corp.'s biggest rival for PC microprocessors plans to pay more than $5 billion to acquire a top graphics chip maker.
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AMD and ATI Technologies Inc. on Sunday were wrapping up talks to close the deal, which called for Sunnyvale-based AMD company to pay $5.4 billion, mostly in cash, the Wall Street Journal reported on its Web site.

An AMD-ATI marriage could shift the balance of power in the chip industry in significant ways. AMD's product portfolio — which has remained limited to the microprocessors that act as a PC's main calculating engine — would balloon overnight, as it folds in two major new chip categories.

The new offerings would give AMD a more complete package of products as it takes on Intel, which has long supplied a wider portfolio that includes so-called chipsets that connect a microprocessor to a PC's other core components and graphics chips that power images rendered by computer games and internet video.

Markham, Ontario-based ATI, which makes chipsets and graphics chips for PCs, also makes a host of semiconductors for consumer products, such high definition TVs and cell phones.

An acquisition of ATI "would make AMD a bigger player with a more diversified portfolio," said Nathan Brookwood, an analyst with research firm Insight 64. "If there is any truth to this deal, it would certainly put AMD on a more equal footing relative to Intel."

A deal would also put competitive pressure on Nvidia Corp., the other dominant maker of graphics chips. Santa Clara-based Nvidia has competed against Intel in selling chipsets and graphics chips while counting on AMD for sales of those products.

AMD has scheduled a telephone conference for 8 a.m. EDT Monday to make a "significant corporate announcement." Chief Executive Hector Ruiz and Chief Financial Officer Bob Rivet planned to staff the call.

AMD spokeswoman Brenda Rarick declined to say what that announcement was or to comment on the news reports. Officials from ATI didn't return messages left late Sunday.
 

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ABCDEFGHIJKLMNOPQRSTFU
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To me it's slightly strange, though, because AMD boards usually have nVidia chipsets. As the article says, AMD and nVidia always had a pretty good relationship.
 

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TonyD said:
To me it's slightly strange, though, because AMD boards usually have nVidia chipsets. As the article says, AMD and nVidia always had a pretty good relationship.
yeah i sorta thought the same thing. maybe this is AMD's attempt to corner the market on hihg end video shipsets.


on a more serious note, if AMD is as good at graphis as they are Processors excellent. but now that i think about it, ATI's people will still be around making the same product, and maybe even under the same ATI name. so all this does is give AMD a nice cash bouns.
 

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ABCDEFGHIJKLMNOPQRSTFU
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I think where it really comes in is product development and compatibility. They might make some interesting technology involving motherboards and such and how the CPU and vid card interact.
 

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TonyD said:
To me it's slightly strange, though, because AMD boards usually have nVidia chipsets. As the article says, AMD and nVidia always had a pretty good relationship.
Well then this actually works out better for them.
 
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