Samsung to acquire AMD ?

One of the biggest rumor has hit the tech circles and there is speculation that the South Korean phone giant could be acquiring the processor manufacturing company, Advanced Micro Designs, popularly known as AMD. According to a source, Samsung will be attempting to take over AMD and merge it with one of its subsidiaries in order to secure both the CPU and GPU IP from the firm. In doing so, the tech giant will be able to take on leading desktop, laptop and mobile processor makers, Intel and Qualcomm respectively.


However, before acquiring AMD, the smartphone maker will have to deal with the cross-licensing agreement between Intel and AMD. Intel grants AMD the x86 license while the latter grants Intel the x86 64 bit license. If Samsung does intend on acquiring AMD, it will have to take note of the possible violation of agreement that could take place between the two processor manufacturing firms.

While Intel is currently dominating the desktop, laptop and server markets, the firm is unable to replicated the success when the smartphone industry is concerned. The company is yet to make a prominent dent in that particular market with its Atom branded SoCs, and Samsung’s acquisition will mean that it will be able to concentrate on both the mobile chipset and desktop CPU fronts in order to zip past other prominent players. ATi, a company that was founded 8 years before NVIDIA was acquired by AMD and in the process, gave its graphics IP to the company. If Samsung does manage to acquire AMD, it will mean that the South Korean tech company will have access to 8 years’ worth of patents, which will allow it to take advantage of both Intel and Qualcomm. In order to reduce the leading mobile chipmaker’s market share, Samsung refused to incorporate the company’s Snapdragon 810 SoC and instead placed its own Exynos 7420, thus severing a long-term partnership between the two companies.

Currently, AMD is working on x86 “Zen” CPU microarchitecture, 64 bit ARM “K12″ core and its upcoming “Arctic Islands” graphics architecture, while Samsung’s arsenal includes its cutting edge 14 nm FinFET process.

Samsung acquiring AMD could have huge implications on the smartphone as well as PC industry. Stay with us for more information about this possible deal.