What AMD's ATI acquisition means for Linux (and Macs) (Linux-Watch)
Posted Jul 25, 2006 17:53 UTC (Tue) by brouhaha
In reply to: What AMD's ATI acquisition means for Linux (and Macs) (Linux-Watch)
Parent article: What AMD's ATI acquisition means for Linux (and Macs) (Linux-Watch)
I think you're wrong about AMD not acquiring ATI for the graphics technology. That's where I think most of the value is. AMD has the ability to produce reasonably chipsets inhouse, and has done that in the past. It's true that they have fallen behind on that (due to reduced need with multiple third-party chipset vendors), so they'll certainly get some benefit from the ATI chipset operation. But chipsets are a fairly low-margin operation, so the acquisition can't be justified on that as the primary basis.
Going forward, integrated graphics will be the big win for them. Initially that will be in the integrated chipsets for value and mobile systems, but over time all but the super-high-end graphics will get absorbed into the chipsets, and the value to medium-high-end graphics will migrate onto the processor die (especially for the mobile segment), along with most of the chipset functionality (USB ports, etc.)
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