It’s happened before, and it’s happening again. Rumours are swirling (yes, again!) that Samsung is looking to purchase chipmaker AMD as a way to rally against Intel and Qualcomm
Samsung is a huge global conglomerate, with its hands in many, many pies including chip fabrication – and the report claims that Samsung’s goal is to secure both the company’s CPU and GPU IP’s. They’d use that property to help it gain leverage over Intel and, mobile chip maker Qualcomm. It all stems from a South Korean news report, which quotes Samsung’s head of telecoms, saying in 2007, that:
it is necessary to consider the AMD acquisition in order to secure a new growth engine
With it being such an old quote, drummed up anew, it’s likely that this is yet another rumour that will fizzle away in to nothing. Would that be such a bad thing though? Samsung is a significantly bigger company than AMD is, and could afford to invest in to R&D, which is an area where AMD is faltering at the moment. AMD’s research budget is the lowest it’s been in a decade. It would help both companies – which is something Tom’s Hardware’s Lucian Armasu said earlier this year.
… by allowing itself to be acquired by Samsung, AMD would gain significant financial backing to achieve its most ambitious goals, strong marketing campaigns, chips built on cutting-edge process nodes, and access to a large portion of the mobile market (including Samsung, but also other manufacturers’ devices) in which to put its chips.
By acquiring AMD, Samsung would get a chip company that has much more experience in designing its own chips, access to the x86 architecture as well as AMD’s advanced GPU architecture, and entrance into the profitable server chip market thanks to both AMD’s relatively solid brand in that market and its experience.
The acquisition would greatly benefit both companies, but it remains to be seen if they see it the same way. Samsung may believe it can do just as well without AMD (unlikely, especially in the server market), while AMD might want to keep its independence for as long as possible (which may weaken the company too much in the future).
Take it all as rumour and little else – but what are your thoughts? AMD is not doing all that well, and Samsung could help Team Red with some much-needed research money. AMD, with its chip expertise, could help Samsung break in to the server market.
Last Updated: March 26, 2015
Blood Emperor Trevor
March 26, 2015 at 15:34
It would be a good deal for both of them I think, then build a console to compete with MS & Sony… which use AMD hardware. huehuehue.
ReaperOfSquirrels
March 26, 2015 at 15:35
The current consoles use AMD hardware already… huehuehue
Blood Emperor Trevor
March 26, 2015 at 15:38
Exactly 😀
ReaperOfSquirrels
March 26, 2015 at 15:50
PHYSICS BIATCH!
Oh wait… they don’t have it!
Pariah
March 26, 2015 at 15:50
It’s about physics in game development.
Blood Emperor Trevor
March 26, 2015 at 15:51
TressFX & dynamic beard growth FTW!
Lord Chaos
March 27, 2015 at 10:27
AMD… Proving only real men can grow beards.
ReaperOfSquirrels
March 26, 2015 at 15:36
I hope that doesn’t happen. I don’t know why, but I just get a bad feeling about that idea.
Hammersteyn
March 26, 2015 at 15:37
Awesome, so when are the putting AMDs in their microwaves? Then we can finally see if the food is warm and has zero cold spots in HD
Blood Emperor Trevor
March 26, 2015 at 15:39
Then women can play games too!
Dutch Matrix
March 26, 2015 at 15:47
Tell us again why are you single?
Blood Emperor Trevor
March 26, 2015 at 15:49
I don’t know!
Dutch Matrix
March 26, 2015 at 15:52
A sensitive soul like yourself should be swimming in women.
Pariah
March 26, 2015 at 15:53
He does. You didn’t specify dead or alive, and swimming implies liquid is involved. Usually means blood or decay. Or both. This is Trevor, he may just go for both.
Pariah
March 26, 2015 at 15:54
Oh and one of them is your mom.
(Real mature, right?)
Dutch Matrix
March 26, 2015 at 15:55
Funny you should mention swimming in dead people in your previous comment… 😛
Pariah
March 26, 2015 at 15:57
That has nothing to do with using an insult that worked when we were 12. You should be asking about my mental health, not my maturity.
Dutch Matrix
March 26, 2015 at 16:02
Well, seeing as my mom is as dead as the Dodo, I think it got a lot to with that insult. And let’s be honest here, posting about swimming in the decay or blood of dead people kind of answers any questions one might have about your mental well being?
And the whole thing about fixing Trevor up with your mom was a joke. I do not know your mother, but I am confident she has the class to never be associated with one as silly as Trevor.
Pariah
March 26, 2015 at 15:49
Are you offering to fix that?
Dutch Matrix
March 26, 2015 at 15:50
Yes. By fixing him up with your mom! 😛
Pariah
March 26, 2015 at 15:52
That’s seriously all you have in response?
Metal Rabbit
March 26, 2015 at 16:06
Not sure if I should be eating popcorn or calling Valkenberg XD
trololol
Pariah
March 26, 2015 at 15:38
The smart move would be to wait until AMD are in a desperate position, acquire it for next to nothing, and profit.
Cat
March 26, 2015 at 15:49
That would not help either of them as by then the advantage that Samsung would benefit with regards to R&D would not give it any advantage anymore. Time spent not researching is wasted time. AMD is already in quite a desperate situation with regards to its CPU architecture & also its GPU sales as from previous reports Nvidia controls more that 70% of the discreet GPU market which is bad for us the consumer. Look at the $1000 (lets not even try convert into Rand’s right now with our exchange rate fluctuations) CPU’s that Intel is selling and Nvidia with its $1000 Titan X GPU’s. Lack of competition creates high prices for us the consumer.
HvR
March 26, 2015 at 16:30
Was way off any earning projections in 2014; layed off 7% of the company end of last year still miss earnings goal in 2015 albeit by small margin. Fabrication tech wise they are a generation behind Nvidia, 2 (soon to be 3 ) generations behind Intel. So think they are very close to desperate.
BurnZ
March 26, 2015 at 15:45
I thought with the consoles using AMD (and selling well) that they would be in a better position? Surely they must be?
Cat
March 26, 2015 at 15:53
That only helps with getting a constant but small amount of money on each console sold. For them to benefit they would need to get income from high margin customers such as the Server market and in workstations for the GPU market.
HvR
March 26, 2015 at 16:25
Margins on the console chips are so low that Nvidia didn’t bother to put in a competing bid for any of the consoles.
Dutch Matrix
March 26, 2015 at 15:45
You just HAD to post an article on CPU’s, didn’t you Geoff???!!!
(Dutch walks away, weeping bitterly.)
Rob
March 26, 2015 at 16:27
Aliens no please no. Samsung make seriously shit products.
pooslayer
March 26, 2015 at 19:56
Fuck that. I don’t want TouchWiz all over my drivers.