AMD mulling break, spinoff

[fixbsod]

http://news.yahoo.com/exclusive-advanced-micro-devices-mulling-breakup-spinoff-sources-002146289--finance.html

O.O

Good or bad for amd longterm....?

 

[Jovec]

http://news.yahoo.com/exclusive-advanced-micro-devices-mulling-breakup-spinoff-sources-002146289--finance.html

O.O

Good or bad for amd longterm....?

Deck chairs on the Titanic.

It's possible they hope to jettison failing units while they still can (before they bring down the company as a whole), in the hope that some parts can remain profitable.

 

[gdansk]

Deck chairs on the Titanic.

More like preparation for scrapping.

 

[Abwx]

There can be no spin off because there s nothing that could be spun off, AMD need both the GPU and CPU IPs since their products integrate boths in the same silicon.

There s no info at all in this fud article, must originate from some short sellers that were caught off guard by the recent stock surge...

 

[JDG1980]

I am having a hard time seeing how this could be made to work. AMD's most successful current line of business is the console contracts, and those require the use of both CPU and GPU technology. Even if breaking the company in half would grandfather those in, the fact remains that AMD has gambled a large portion of their future on the APU fusion technology. Zen isn't going to be able to flat-out beat Intel's best server and HEDT chips, so unless they want to compete largely on price (and they specifically said during FAD that they want to stop being "the budget alternative") they will need to bring something extra to the table. The obvious thing they can do that Intel can't duplicate is a viable gaming APU: four Zen CPU cores running at 3-4 GHz with good IPC, combined with a 2048-shader GPU on the same die, all sharing 8GB of HBM2 RAM. But to do something like this they need to remain in their current form.

The road to 2016 is a long one, and it's going to largely consist of playing out the string with outdated products. From a consumer perspective, this sucks. And 2016 is make-or-break; if Zen flops, AMD is dead. But breaking up before then would amount to forfeiting before the game even starts.

 

[cbn]

The obvious thing they can do that Intel can't duplicate is a viable gaming APU: four Zen CPU cores running at 3-4 GHz with good IPC, combined with a 2048-shader GPU on the same die, all sharing 8GB of HBM2 RAM.

That would be an extremely niche product.

Ironically, I think one thing AMD could do that would help them is reduce iGPU size on certain future big core (ie, quad Zen core) APUs.

Then crank out more dies on each wafer.

This would also allow AMD to have both small and large iGPU big core (ie, quad Zen core) APUs share a common platform for laptop. (This unlike the situation today where Kaveri appears to be a very low volume and niche product in Laptops).

P.S. I think the main reason we see relatively large iGPUs (eg, GT2) on mainstream Intel chips is because Intel already sells as many chips as the can (plus Intel has the fab capacity to throw in the iGPU as the bonus). AMD is not in that same boat. They haven't maxed out on volume of chips like Intel has. Reducing iGPU size (and refocusing on CPU) for mainstream allows AMD a chance to undercut Intel in some way.

 

[postmortemIA]

Well they must be very desperate to even consider this. I believe intel's x-licensing agreement is such that applies only to AMD as-is.
good luck selling anything to console OEMs if they would have to deal with two companies.

 

[cbn]

For the emerging economies, if AMD cannot produce a tablet chip I think that is OK (considering their situation).

Instead I would hope they can produce a workhorse laptop chip.

IMHO, Workhorse laptop chip is quad core Zen with small iGPU rather than dual core Zen with medium size iGPU. (Basically the opposite direction Intel has been going).

 

[positivedoppler]

It's a very bad idea. SOC is the future. Even Intel is wising up and dedicating more real estate for the igpu.

 

[Yuriman]

Trying to escape debt? Jettison the competitive part(s) (small core + GPU) and allow the rest to implode?

 

[turtile]

Considering they just merged these groups together, they'd have a huge challenge try to take them back apart. Now if they are trying to sell off what ever is left of Seamicro...

 

[frozentundra123456]

Just a rumor, dont see it happening. I suppose they could be trying to get some cash for research and operating funds, but as someone else said, they went all in on Fusion, and igp tech is the only place they are likely to beat intel long term. Not sure how splitting up the company would help that.

 

[Rvenger]

I mean, if Zen is a fail then spinning off ATI would at least save the GPU side of the business. Can't AMD use the graphics IP in their chips even if they spin off ATI? It would be an agreement type deal like Glofo I would think??

 

[cbn]

I mean, if Zen is a fail then spinning off ATI would at least save the GPU side of the business. Can't AMD use the graphics IP in their chips even if they spin off ATI? It would be an agreement type deal like Glofo I would think??

I'll bet the situation is the reverse.

Zen is a decent CPU and AMD sees large iGPU consumer APUs as being too niche.

However, I don't think they need to spin off the graphics. They just need to take measures to refocus on CPU again.

 

[frozentundra123456]

Yea, but AMD has a lot more expertise in gpu/igp than intel, while I am not sure they can really compete in cpu, even with Zen and 14nm. With their (Intel's) process advantage, if AMD starts pushing them in cpu, intel could easily bring out a hex or even octo core mainstream cpu with a small igp, like you keep saying AMD should do with Zen. HSA/HBM/strong igp seems like the only chance for AMD. Besides of they spun off the graphics division, it would make the next console contracts much more difficult to negotiate. Or maybe they see the handwriting on the wall already and the next consoles are going ARM.

 

[cbn]

Yea, but AMD has a lot more expertise in gpu/igp than intel, while I am not sure they can really compete in cpu, even with Zen and 14nm. With their (Intel's) process advantage, if AMD starts pushing them in cpu, intel could easily bring out a hex or even octo core mainstream cpu with a small igp, like you keep saying AMD should do with Zen. HSA/HBM/strong igp seems like the only chance for AMD.

And how many people need to have big iGPUs?

P.S. For AMD's small iGPU Zen APU, I would like to see it as a quad core, not octocore (or dual core).

Besides of they spun off the graphics division, it would make the next console contracts much more difficult to negotiate. Or maybe they see the handwriting on the wall already and the next consoles are going ARM.

Yeah, I don't think it is a good idea for AMD to spin off graphics either.

 

[Tsavo]

What do they have to spin off?

AMD must be worse off than I thought.

 

[ClockHound]

Or.....someone has some shorts coming due and needs to muddy the FUD waters....but this story was published on the internet from unknown sources so it must be true.

 

[dealcorn]

From an etiquette perspective, this may be a necessary exploration prior to commencing a pre packaged bankruptcy. After jettisoning the WSA and some debt, AMD may be able to attract fresh capital and a better foundry to support recovery of it's discrete graphics business.

 

[frozentundra123456]

And how many people need to have big iGPUs?

P.S. For AMD's small iGPU Zen APU, I would like to see it as a quad core, not octocore (or dual core).



Yeah, I don't think it is a good idea for AMD to spin off graphics either.

Maybe not a lot need big igps, But possibly with HBM it could be a decent gaming platform. It is the only way AMD can differentiate itself from intel. If you want to have a strong cpu with just a good enough igp, intel has that already.

 

[CHADBOGA]

What do they have to spin off?

AMD must be worse off than I thought.

There is surely nothing to this story coz . . .

AMD is in the best financial shape[in 2014] that its been in years. The cost cutting has worked well, they just need new product. The true dark days were probably circa 2008 -- the company's financial position is a lot more stable now.

 

[cbn]

Maybe not a lot need big igps, But possibly with HBM it could be a decent gaming platform. It is the only way AMD can differentiate itself from intel.

AMD can also different themselves from Intel by offering more CPU and less iGPU.

Example:

4C/8T Zen + small iGPU

vs.

2C/4T Intel + medium iGPU (ie, GT2)

 

[Shehriazad]

That smelly smell...

 

[NTMBK]

Regarding consoles- in the future, ARM cores will suffice. Licensed A72 cores plus custom graphics and memory controller IP would work fine. (Same goes for Nvidia of course.)

 

[nenforcer]

I thought the future was fusion, not breaking it up or spinning it off?