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Merged AMD-ATI monster embarks on monopoly-busting

Discussion in 'ATI' started by AirRaid Mach 2.5, Jul 24, 2006.

  1. http://theinquirer.net/default.aspx?article=33230

    Intel in the crosshairs, as execs explain themselves

    By Paul Hales: Monday 24 July 2006, 14:31
    BEST MATES AMD and ATI held a conference call today in which the
    companies' biggest cheeses sought justify their new cohabitation.

    The 'excited' executives were led by AMD CEO Hector Ruiz who lauded the
    deal as re-shaping the future of the industry. "We're excited about
    what we can do together in a market dominated for years by one
    company," in the first of many digs at arch-competitor Intel.

    AMD confirmed that much of ATI's operation will be brought in-house,
    but AMD will remain, "committed to ATI's customers, employers and
    Canada," said Ruiz.

    He added that he didn't expect lay-offs "in any significant numbers".

    Ruiz confessed that AMD had been mulling its best options for a
    partnership over the past two to three years and it is ATI's expertise
    in the mobility space as well as its chipset business that makes the
    firm such a good fit with AMD.

    The ATI team will play and key role in the joint future of the company
    he said, adding he was confident that the companies and their
    respective cultures would integrate well together, their products
    having occupied "adjacent real-estate on motherboards" for so long.

    The executives, Ruiz and ATI CEO Dave Orton, along with Dirk Meyer and
    chief AMD bean counter Bob Rivet were agreed the deal would provide
    better value to customers and shareholders in both companies. Bob said
    the merged company would be better positioned to achieve AMD's stated
    objective to "break the monopoly".

    AMD's customers had been insisting AMD play a bigger role in the
    "eco-system" of its mobility and consumer electronics marketplaces,
    said Meyer.

    He said he expected the PC to continue to play a central role in both
    the business environment and the home, suggesting that "non-general
    purpose" processing units such as GPUs would be integrated into
    computing platforms much like the floating point co-processor had
    disappeared over the past ten to fifteen years.

    Dave Orton confessed to being as excited as anyone. Be said the
    combined company would be able to look beyond the CPU, GPU and chipset
    landscapes and increase its penetration into enterprise, mobile
    computing and consumer electronics sectors.

    "AMD has great CPUs, we have great GPUs," he said. He reckoned the next
    stage for the merged company would be to integrate its offerings,
    combining two or more products to create devices that improve on the
    sum of their two parts.

    The new company will achieve "cost synergies" worth $75 million by the
    end of 2007, increasing to $125 million by the end of 2008. By then the
    company will be well into its "integration plan", more details on which
    it promised to deliver soon.

    The company expects to lose ATI revenues from it work on Intel
    platforms which bean-counting Bob said was worth about $100 million per
    quarter, a loss Ruiz is confident the company will make up for.

    Dave Orton said ATI would continue to deliver Intel chipsets for as
    long as its customer wanted it to.
    AirRaid Mach 2.5, Jul 24, 2006
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