Digital Journal — Look out, Intel. Your rival just got a whole lot bigger.
PC chip maker Advanced Micro Devices will buy ATI, a developer of graphic chips based in Markham, Ontario, in a deal valued at $5.4 billion (US). Expect a massive shift of market power as AMD ushers in more technology to battle chipset leader Intel.
ATI, known as a burgeoning chipset maker, also makes semiconductors for consumer products such as high-def TVs and cellphones. Combined with AMD’s expertise in powering a computer’s calculating engine, this tech marriage could pose a significant hurdle to companies trying to jump into the chipset industry.
Since AMD can now offer integrated graphics solutions to PC manufacturers much like Intel does, only good news can come from this buyout. In fact, it’s not only Intel looking over its shoulder. Nvidia, another dominant maker of graphics chips, will also face the heat of a deal that is destined to ripple across the entire PC sector.
