AMD sells handheld graphics assets to Qualcomm
By James Carbone -- Purchasing, 2/12/2009 2:00:00 AM
Chipmaker amd has sold its handheld graphics and multimedia technology assets and intellectual property to Qualcomm in a deal valued at $65 billion.
"This acquisition from AMD's handheld business brings us strong multimedia technologies, including graphics cores that we have been licensing for several years," says Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. "Bringing this technology in-house creates even greater synergy as we seamlessly integrate the best-in-class multimedia performance AMD offers into our system-on-chip (SoC) products."
The sale will allow AMD to focus on its core business of microprocessors and high-end graphics chips, according to Robert J. Rivet, chief operations, administrative and financial officer at AMD.
The companies signed and closed on the sale January 19, and have received required regulatory approvals. Under the terms of the agreement, Qualcomm says it will retain various design and development teams from AMD's handheld business. The teams are developing technologies to improve mobile devices in 2D and 3D graphics, audio/video, display, and architecture.
AMD is one of many suppliers struggling during the downturn. It is reducing its workforce by about 9%, amounting to 1,100 jobs. It is also cutting salaries for all workers. AMD had previously sold off its digital TV chip business to Broadcom.
AMD launches GlobalFoundries
03/05/2009Intel charged in antitrust lawsuit
11/04/2009
Now Playing: 