We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

AMD sheds handheld chips in $65m deal

Qualcomm deal gets go-ahead

Qualcomm has acquired AMD's handheld chip division for about $65m, looking to bring greater multimedia capabilities to handsets based on its chips.

The deal will help AMD focus on its core businesses of making x86 CPUs and high-end multimedia chips, according to a joint press release by the companies.

Qualcomm bought graphics and technology assets, intellectual property and other resources from AMD, and will offer to hire design and development teams from the company, they said. The teams are working on 2D and 3D graphics, display, audio and video products. Qualcomm said it would integrate AMD multimedia technology into its system-on-chip products.

AMD has been struggling against its much larger rival, Intel, and last October spun off its foundry business as a separate company. On Monday, the company said it would eliminate 1,100 more employees and cut salaries in order to remain competitive.

Qualcomm makes chips and licenses technology for a wide range of mobile handsets. It has also been pushing mobile multimedia through its MediaFLO unit, which builds broadcasting systems for delivering digital TV to cell phones.

The value of the acquisition could change because of adjustments for employee-related expenses. Qualcomm expects the deal to dilute its pro forma earnings per share by $0.02 in its 2009 fiscal year, which will end in September, and begin to add to its earnings in the second half of its 2010 fiscal year.


IDG UK Sites

How to use an Apple Watch: Everything you need to know about the Apple Watch

IDG UK Sites

Why Scottish Tablet is better than the iPad mini

IDG UK Sites

How Microsoft's HoloLens AR headset will work without needing a computer or phone

IDG UK Sites

Apple MacBook 1.1 GHz review (Retina, 12-inch, Early 2015): The future of Apple laptops