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ATI's Street News Flash
Easy, tiger

ATI just released the July Street News Flash, which was published in response to the recent news of an AMD takeover.  There are just too many good quotes in this one, so we thought we'd just quote the whole news flash in its entirety:
On ATI's Intel License: There is no truth to the rumor that Intel has pulled ATI's chipset license. We continue to ship Intel chipsets under license.

On AMD's commitment to GPUs: The merger with AMD reinforces ATI's position as the world's best GPU supplier. AMD is absolutely committed to maintaining and extending that leadership. The merger gives access to AMD technologies and resources - for example, custom memory design - which will raise performance and reduce costs, further increasing ATI's competitiveness. Also, AMD has been extraordinarily effective in the channel, and access to their know-how, experience, and network, will be a powerful plus for ATI.

On Intel platforms: AMD acquired ATI so it could be the world's number one graphics processor supplier. AMD is absolutely committed to supporting graphics on Intel platforms. Hector Ruiz, AMD's CEO, made this completely clear on the conference call that announced the merger. He stated that AMD wanted to increase choice in the market, and that included ATI graphics on an Intel platform.

On the gift to Nvidia: Nvidia has seen the writing on the wall, and doesn't like what it's saying. The PC market is a tough place to be without any friends. ATI now has all the resources of AMD behind it, and will be producing faster, more compact GPUs and reaching the channel more effectively than ever before. Nvidia's words are bravado, designed to confuse the market while the company tries to find a way to compete now that it's standing alone.

Of course, we also reported that the ATI-Intel cross-license agreement was still in place yesterday.

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RE: Who really knows?
By cgrecu77 on 7/26/2006 7:24:23 PM , Rating: 2
Well depends if ATI can utilize some of the CPU know how in their GPUs. Intel hasn't been able too

AMDATI has BOTH cpu and gpu knowledge, intel only has cpu. To even think that Intel couldn't develop a decent discrete video card is also not realistic, Intel could do ANYTHING, given the resources it has, it's just that it doesn't make sense for them to expand there because the margins are too low compared with their core business.

While the main goal for AMD is to become an integrated solution provider like Intel, it's impossible for future ATI products to have no benefit from AMD technology (if only for the advanced manufacturing process). Nvidia and ATI were neck-to-neck for the last 3-4 years, but it's conceivable that the balance could shift dramatically in the future. And the big problem for NVidia is that they CANNOT merge with Intel even if they would want to, unless their market share crashes dramatically and even then is questionable. They would have a better chance of merging with AMD, but now I would say it's out of the question as well ... So the future is quite bleak for nvidia UNLESS, and it's a big unless, AMD goes bankrupt within the next 5 years. I'm not sure if that's possible though, they have way too much manufacturing power and know-how for that to happen (and their debt level is not that high). This year there will probably be mostly downsides from this merger, but starting next year we should be able to see the benefits (like a Radeon 12 or Radeon 13 built on a .45 process).

RE: Who really knows?
By Lonearchon on 7/26/2006 11:46:46 PM , Rating: 2
Well Intel has the largest share of the pie for graphics with it intgrated gpus over half i think so they have experence with GPUs they just don't find a need yet. ATi can use many things from amd besides die shrinks like custom dies for gpus, on chip cache like cpus have, Hypertransport for a GPU maybe even a socketed GPU

RE: Who really knows?
By Calin on 7/27/2006 3:50:29 AM , Rating: 2
Intel had a graphic chipset for AGP cards - the 740 I think. It was not bad (but it was not at all competing with ATI and NVidia at top end - I think those times had a happy competition in graphic cards, with 3DFx/STB, Intel (just i740), and Kyro/Kyro2

RE: Who really knows?
By BenSkywalker on 7/27/2006 2:51:49 PM , Rating: 1
The i740 launched facing the Riva128 and RagePro from nV and ATi respectively, it actually whipped both of those. It didn't, however, come close to running with SLId Voodoo2s.

RE: Who really knows?
By killerroach on 7/27/2006 12:33:53 AM , Rating: 2
The one thing that Intel has, regardless of knowhow, is a shedload of money. If they were intent on entering the GPU market full-force, Intel has the financial resources that they could pour into the necessary R&D to make themselves a very competitive, if not dominant, player in that space.

So, why don't they? Simple... margins. The profit margins on a GPU are typically atrocious at best and non-existent at worst, and it wouldn't make financial sense for Intel to throw that much money into a division where it would take them forever to make said money back. Just because you have the ability to compete in a particular market doesn't mean you necessarily should, and that seems to be the route Intel is taking with the GPU business (which is odd, since they seem to stick their hand into practically every other semiconductor cookie jar at any level they want).

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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