Analysts claim AMD-ATI merger is 'likely'
In a rather surprising article, Forbes says AMD
is eyeing a possible purchase of ATI. This claim originates from RBC
Capital Markets analysts who say the move would "benefit the overall
graphics industry." To support the claim, one analyst told investors a
possible merger would be "consistent with the recent announcements by
AMD to significantly increase capacity over the next few-years." Earlier
this week, AMD did indeed announce
plans to revamp one of its fabs in order to increase production. AMD
is also expecting additional production from Chartered Semiconductor
starting this summer.
The analyst's statement could be taken to mean that AMD's plans to boost
capacity pave the way for a merger, since ATI could potentially end up
relying on AMD for production were a merger to take place. However, PC Perspective believes the
analyst is simply saying that ATI could help increase AMD's capacity
further. If that's the case, then the analyst's rationale is flawed,
since ATI relies on third parties for manufacturing.