AMD gives up mobile graphics to Qualcomm
updated 08:30 am EST, Tue January 20, 2009
AMD Mobile GPU to Qualcomm
AMD on Tuesday said it has sold the core of its Imageon mobile graphics business to Qualcomm. The roughly $65 million deal gives the chip design company the intellectual property rights, the option of hiring related AMD workers, and other resources. It effectively puts AMD out of the handheld video category, leaving the company to focus on desktop and notebook graphics for its Radeon line.
Qualcomm describes the buyout of the mobile graphics division as a step towards improving its system-on-chip line, which powers many cellphones and handhelds and should improve significantly in 2D and 3D performance once AMD's technology is integrated into its hardware. Qualcomm builds both the cores 3G and eventually 4G cellphones and also targets netbook-level performance with its Snapdragon processors.
AMD interprets the sell-off as an opportunity to center its attention on its most successful businesses and is allowing the partial acquisition just days after it said it would cut 1,100 jobs to turn around the company's sinking fortunes. The company continues to struggle against Intel in the computer market and is only now releasing more competitive processors such as the Phenom II even as its Radeon HD line is performing well.
