AMD-ATI deal to alienate small board partners?

— 2:21 PM on August 31, 2006

Smaller ATI board partners could pull out of the market as a result of AMD's purchase of ATI, according to Adrian Thompson, Worldwide Marketing VP of Sapphire. Thompson said the following in an interview with Middle-Eastern IT site ITP Online:

"The AMD-ATI deal is excellent as far as Sapphire is concerned," said an upbeat Thompson. "The strong ATI partners will survive and it may well lead to some of the smaller players exiting the market. ATI has 16 partners and probably only needs five," he added.
Thompson didn't explain exactly how the AMD-ATI merger could drive partners out the market. However, as X-bit labs points out, growing consolidation of graphics card and motherboard manufacturers could play a major part in thinning the herd.
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