AMD's move into ARM arena: Forbes source

[Keysplayr]

AMD's move into ARM arena might just be a way to better position it for sale, according to Forbes.

http://www.forbes.com/sites/ericsav...ips-positioning-it-for-sale/?partner=yahootix

 

[ShintaiDK]

It also seems to be AMDs only hope.

http://www.businessweek.com/news/20...g-cash-crunch-amid-quest-for-new-markets-tech

Cash Burn

The company had already disclosed on Oct. 11 that third- quarter sales fell short of its earlier predictions, leading Standard & Poor’s to place the company’s BB- credit rating on watch for a possible downgrade.

Credit default swaps on AMD debt, which rise as investor confidence deteriorates, are trading at their highest level since Nov. 11, 2009. Derivatives traders are now pricing in a 62.5 percent chance of AMD defaulting within five years, up from 51 percent on Oct. 17, according to a standard pricing model maintained by data provider CMA. Contracts protecting the company’s debt climbed to 18.5 percentage points upfront today, up from 9.3 percentage points on Oct. 17.

AMDs last days in x86 is counting down fast.

Looking just at the question of whether a company is acquired and for how much, they find out that golden parachutes work about how you would expect. Companies whose CEOs have golden parachutes are more likely to get acquisition offers and are more likely to be acquired, presumably because their CEOs are les likely to contest takeovers. On the other hand, these companies tend to sell for lower acquisition premiums, again because their CEOs are more likely to be happy to be bought out.

“So far, so good,” Bebchuk writes. But the problem is that when you take a longer view, golden parachutes appear to be bad for shareholder value.

Rory got one?

 

[Keysplayr]

It also seems to be AMDs only hope.

http://www.businessweek.com/news/20...g-cash-crunch-amid-quest-for-new-markets-tech



AMDs last days in x86 is counting down fast.



Rory got one?

I don't think he would have left a secure position at Lenovo into an unsure risk of a challenge that is AMD without one. But wonders never cease.

I feel bad for those AMD employees though. Watching their one time co-workers being escorted off the premises and wondering if the next time they see security, they might be coming for them. That really sucks.

 

[railven]

I feel bad for those AMD employees though. Watching their one time co-workers being escorted off the premises and wondering if the next time they see security, they might be coming for them. That really sucks.

This. Mostly because management totally screwed the pooch. As someone who witnessed downsizing my blood boiled when I saw managers getting new desks, new chairs, new PCs, while my coworkers were being escorted off the premise.

I don't even know what I feel about "AMD" as a whole. Never liked their processors and sadly they own the GPUs I prefer

 

[nonameo]

oh well! CPUs are a luxury item anyway I'm still using a C2D E4500.

 

[Yuriman]

This. Mostly because management totally screwed the pooch. As someone who witnessed downsizing my blood boiled when I saw managers getting new desks, new chairs, new PCs, while my coworkers were being escorted off the premise.

I don't even know what I feel about "AMD" as a whole. Never liked their processors and sadly they own the GPUs I prefer

The Athlon XP and Athlon64 chips were wonderful. Regardless of feelings about their current chips, it will be a blow to consumers if they go under.

 

[Jaydip]

IMHO they need some solid short term strategies.This move may be beneficial in the long run but they need some "good" showing now.

 

[ElFenix]

thanks hector!


edit: who would want to buy amd? is graphics profitable? you'd need huge amounts of cash and probably your own foundries to hope to compete with intel in x86 anymore. which would limit suitors to samsung and china.

 

[Ferzerp]

thanks hector!


edit: who would want to buy amd? is graphics profitable? you'd need huge amounts of cash and probably your own foundries to hope to compete with intel in x86 anymore. which would limit suitors to samsung and china.

I don't think the US would approve a Chinese acquisition of AMD to be honest.

 

[mrmt]

I don't think he would have left a secure position at Lenovo into an unsure risk of a challenge that is AMD without one. But wonders never cease.

I don't think that you, me or most of people here could say if his position was secure or not, but even if the assumption is correct there could be a tons of motives, some personal, some professional, that would make him move up to AMD.

He might have wanted to be back to the US, or his wife could. Also a CEO position is a CEO position, and even if he fails a ton of opportunities will be open to him. etc.

Bruce Claflin, the puppet master behind Rory Read, became Chairman at AMD after wrecking 3Com.

 

[ShintaiDK]

I don't think the US would approve a Chinese acquisition of AMD to be honest.

And why? US would need a pretty significant excuse. The rest of the world wont accept "just because..."

 

[Ferzerp]

And why? US would need a pretty significant excuse. The rest of the world wont accept "just because..."

Errr, the US is not very friendly to Chinese aquisitions that can become a potential security threat. All mergers/aquisitions must be approved, the rest of the world has no say in what is allowed for US businesses.

 

[ShintaiDK]

Errr, the US is not very friendly to Chinese aquisitions that can become a potential security threat. All mergers/aquisitions must be approved, the rest of the world has no say in what is allowed for US businesses.

There are no security threat. Thats pure BS. The entire US already runs on components made in China.

And if you use protectionism in any form you are on a road for trade wars. Thats a game the US can only lose. Specially when you run a huge trade and budget deficit and are 100% dependent on others, for example China.

 

[Ferzerp]

There are no security threat. Thats pure BS. The entire US already runs on components made in China.

And if you use protectionism in any form you are on a road for trade wars. Thats a game the US can only lose. Specially when you run a huge trade and budget deficit and are 100% dependent on others, for example China.

We aren't friendly to China when they try to acquire current US assets.

http://www.lexology.com/library/detail.aspx?g=d9e1adc7-3c68-4bd7-ad97-260ebb695623

 

[iCyborg]

There are no security threat. Thats pure BS. The entire US already runs on components made in China.

And if you use protectionism in any form you are on a road for trade wars. Thats a game the US can only lose. Specially when you run a huge trade and budget deficit and are 100% dependent on others, for example China.

This is wrong. If China wanted to buy Lockheed Martin or Boeing, do you think US would approve because "they have no say in what the rest of the world does"? China is on the list of countries with technology export restrictions, and what Intel/AMD do, falls under this:
http://efoia.bis.doc.gov/exportcontrolviolations/e2060.pdf
AMD was charged for "Export of technology to China withut license"

I seriously doubt government would approve a sale of the whole company when they need licenses for some specific "microprocessor technology".

 

[ShintaiDK]

This is wrong. If China wanted to buy Lockheed Martin or Boeing, do you think US would approve because "they have no say in what the rest of the world does"? China is on the list of countries with technology export restrictions, and what Intel/AMD do, falls under this:
http://efoia.bis.doc.gov/exportcontrolviolations/e2060.pdf
AMD was charged for "Export of technology to China withut license"

I seriously doubt government would approve a sale of the whole company when they need licenses for some specific "microprocessor technology".

Those companies you can use the security excuse on. You cant with AMD.

The PCH for LGA1155 is manufactored in Fab68 in China as well.

And again, AMD could just move its HQ to Germany and sell to the Chinese. The US holds nothing of value in terms of AMD.

 

[iCyborg]

Then what was the charge for, when there's nothing of "security value"?
Furthermore:
http://www.china.org.cn/english/BAT/146498.htm
"The second largest CPU firm in the world, AMD said the transfer is in agreement with the technology export control regulations of the US Government."

US Government "does get a say" in this matter. If you want to argue that US Govt would approve, that's one thing, but saying they're irrelevant here is simply incorrect.

 

[ShintaiDK]

It still only applies for US businesses. Move your business out of the US and its solved. Maybe the US will ban your product as bad losers, but luckily the wast majority of revenue is outside the US.

If the US government think there is a security risk, rather than just regular business. Then they should nationalize it instead of waiting for a chapter 7 or 11.

For some reason there aint much capitalism and free marketforces left in the US.

 

[happysmiles]

lets get back to the topic of AMD.

AMD are simply trying to get themselves into the best position for future tech by befriending and supporting other companies with similar goals. Clearly x86 is facing increasing competition by ARM and once ARM starts reaching x86 performance for less power draw at the same or better price that's when crap is really going to hit the fan.

AMD knows that the best way to stay safe is to befriend the attacker and not to keep attacking the king of the hill which even Intel knows that it's time is coming to an end with it's current reign (hence 10w haswell)


You can argue all you want with each other but it does not change what they're trying to do.

Even Microsoft knows. Win RT is literally the beginning of MS ARM relations.

 

[iCyborg]

It still only applies for US businesses. Move your business out of the US and its solved. Maybe the US will ban your product as bad losers, but luckily the wast majority of revenue is outside the US.

If the US government think there is a security risk, rather than just regular business. Then they should nationalize it instead of waiting for a chapter 7 or 11.

For some reason there aint much capitalism and free marketforces left in the US.

And LM can just move HQ to some other country and sell F22s to China, right? If US were to nationalize AMD, they'd have to nationalize Intel too. Boeing and LM are more sensitive companies, and they're not nationalized either...

It's not that simple, and it's not just pieces of weaponry that are regulated. Microprocessors, cryptography software etc. You don't just go "oh, will just sell it from some other country"...

 

[ShintaiDK]

Boing and LM is already on tax dollar welfare, so why not AMD?

The Dreamliner alone got 5 billion$ from the state.

 

[Idontcare]

IMHO they need some solid short term strategies.This move may be beneficial in the long run but they need some "good" showing now.

Solid short term strategies

Short term strategies are a dime a dozen because they are just that, short term. AMD needs a long term solution to a long term problem.

ATI was a move in that direction, they just need to do something more with their $5B investment versus what they have done with it so far. (or spin it off and invest the proceeds into another technology direction that is more suited to AMD's management capabilities)

 

[Sheep221]

Those companies you can use the security excuse on. You cant with AMD.

The PCH for LGA1155 is manufactored in Fab68 in China as well.

And again, AMD could just move its HQ to Germany and sell to the Chinese. The US holds nothing of value in terms of AMD.

EU won't allow that either.

 

[wenboy]

This is wrong. If China wanted to buy Lockheed Martin or Boeing, do you think US would approve because "they have no say in what the rest of the world does"? China is on the list of countries with technology export restrictions, and what Intel/AMD do, falls under this:
http://efoia.bis.doc.gov/exportcontrolviolations/e2060.pdf
AMD was charged for "Export of technology to China withut license"

I seriously doubt government would approve a sale of the whole company when they need licenses for some specific "microprocessor technology".

Just browsing, of course this is wrong. You can just look into McCathyism in the 50s and see the techban is not going to work. Banning supercomputers Chinese developed fastest supercomputer in the world (that's couple yrs ago, donno now). Banning arm sells and now Chinese have stealth fighters. But the things that are not "Export" restricted, Chinese do not have a jet liner, do not have a PC processor tech and do not have a operating system.

 

[ShintaiDK]

Just browsing, of course this is wrong. You can just look into McCathyism in the 50s and see the techban is not going to work. Banning supercomputers Chinese developed fastest supercomputer in the world (that's couple yrs ago, donno now). Banning arm sells and now Chinese have stealth fighters. But the things that are not "Export" restricted, Chinese do not have a jet liner, do not have a PC processor tech and do not have a operating system.

They have a CPU, they have the OS and they are working on the jetliner industry.

In short, the bans only hurt american businesses and losing jobs to new chinese companies.

Just ask americans about socialism today. The response is (usually) still something that comes from McCathyism and the brainwashing.

http://www.wired.com/wiredenterpris...utm_medium=RelatedLinks&utm_campaign=Previous

They only lack the Tesla etc for GPGPU. Else its all domestic. This is all money that could go into Intel or AMD R&D instead.

“Don’t think of this in terms of supercomputing,” says Dongarra. “There’s a low-end that where these chips can work. You can imagine these chips replacing all the Intel chips in the China.”

On top of that the Chinese economy will overtake the US in 4 years:
http://www.dailymail.co.uk/news/art...-predicts-year-Chinas-economy-surpass-US.html