To: TGPTNDR who wrote (200162 ) 6/2/2006 4:34:42 PM From: Petz Read Replies (2) | Respond to Digitimes throws a smear into an otherwise reasonable article: digitimes.com Taiwan chipset and mobo makers feel Intel-ATI tie-up makes more sense Taiwan-based chipset and motherboard makers, in response to recent speculations that ATI Technologies is an acquisition target for Advanced Micro Devices (AMD), feel that an Intel buyout of ATI would make more sense, according to industry sources. so which is it, "chipset & mobo makers" or "industry sources Unspecified chipset and motherboard makers called the possible AMD-ATI acquisition as less logical than an Intel-ATI acquisition. According to the makers, insufficient capacity and unstable shipment process concerns have been a long-term issue for AMD, which will have limited capital after it sinks US$2.5 billion into revamping its Dresden fab. Buying ATI, whose total stock is valued at over US$4.2 billion and does not provide any production facilities, is not a reasonable idea for AMD, stated the makers.if you're going to complain about the 2.5B, then don't complain about "insufficient capacity" In addition, AMD has maintained a close partnership with ATI's rival Nvidia and third-party chipset suppliers Silicon Integrated System (SiS) and VIA Technologies, both of which compete with ATI in the same area, the makers indicated. If AMD decides to buy ATI to pave the way for own-brand chipset production, it will lead to unbalance in the chipset industry, according to the makers....precisely why the FTC should not allow it -- the two biggest combining to have 68% market share vs. 19% for Nvidia. Apjit Walia, an analyst with RBC Capital Markets, who was quoted in a Forbes story saying that an AMD-ATI merger was likely, stated that AMD's recent announcement to expand capacity was consistent with the synergies of an ATI acquisition, as ATI is a rare-buy in the semiconductor space and that an AMD-ATI tie-up would be good for the graphics industry.
