AMD Looking to Sell Texas Site As PC Sales Continue to Nosedive
November 29, 2012 1:25 AM
comment(s) - last by
It hopes to close the deal in Q2 2013
Advanced Micro Devices (AMD) is selling its Texas campus as a result of the sluggish PC market.
Chip maker AMD said it will sell and lease back its 58-acre Austin, Texas campus for $150 million to $200 million. It hopes to close the deal in Q2 2013.
This isn't the first sign of AMD's struggles. In
, the company's cash declined $279 million to $1.48 billion. Research firm Gimme Credit also downgraded its rating for AMD from "stable" to "deteriorating." Furthermore, it has been laying off engineers (about 15 percent of its workforce in October 2012) as it attempts to save some cash.
Why the troubles? Mainly because 85 percent of AMD's business relies on the PC market, and the PC market has been taking a hard hit in recent years.
Since the introduction of mobile gadgets like the smartphone and tablet, PCs have seen a strong decline in sales. Consumers want mobility, and these gadgets combine the power of PCs with the convenience of mobility. Hence, PCs have been down in the dumps.
AMD is currently looking to sneak into other markets in order to stay afloat. In late October, the chip maker announced it was
making 64-bit ARM processors
for multiple markets. It's starting with its
Piledriver Opteron 6300 Series
, which will replace the Bulldozer-equipped Opteron 6200 Series.
Just this month,
claimed that AMD was pursuing a sale
, but AMD denied it. It's currently looking into its options, but a sale isn't No. 1 on the list.
Intel has been in the same PC slump as AMD, but seems to be doing better through these hard times. It posted a better-than-expected
$3 billion USD profit in Q3 2012
, and has been working hard on its
22 nm Haswell architecture
to rival the likes of AMD. Haswell will launch in 2013.
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RE: Zombie Style
11/29/2012 8:56:05 AM
So you would rather NOT have any competition for Intel?
Intel chip prices are already HIGH compared to AMD chips. Since my first computer build (back in 96) I've been building AMD based systems and putting the extra cash in my pocket or whomever I've built systems for. AMD has always been more than sufficient for 100% of my needs. From ripping/trans-coding my entire CD/DVD collection to my home-server, to building databases for people on the side and of course basic web use. Truth is, most consumers would do fine with today's AMD/APU systems. Most users are not even utilizing half of the power in their current systems. Intel is a well known brand name (good marketing) and its a simple fact that most general consumers (85%+) typically have no clue about what their true system/spec needs are, but they go for the brand name and follow current perceived tech fashion (Apple). I know most of the DailyTech readers do not fit in the previous mentioned group, but you have to admit you know lots of people who probably still call the computer case a hard drive.
I for one would like to see AMD around for many years to come. Competition is good for You and Me. I'm hoping AMD can get their act together and remain a significant player in both home and server computers. My next AMD system will be a Mini-ITX in a Lian-Li PG-07 case. No gaming here so no need for a large case.
Best wishes for the coming new year,
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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