SED - Samsung M&A AMD research news

Jan 6, 2015
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Seoul Economic Daily a part of major news and research group of Korea Times had a series of articles on Samsung and competitors past and future over the past several days. This article considers information that Samsung proceed with merger acquisition of American chip design company AMD.

If Samsung holding the cash bundles more than 60 trillion won (60-70 billion US$) of these have bought an AMD-class semiconductor design skills with a lot of claims that a win-win for both companies.

Deda looks particularly positive attitude toward Samsung's mergers and acquisitions (M & A) There are two companies that enhance the next generation of semiconductor development cooperation is growing even more anticipation for the M & A is. Instead, AMD, Samsung Electronics and TSMC in Taiwan next new production - also comes constantly observed GlobalFoundries will leave the Union.

Industry insiders are paying attention to AMD's semiconductor design skills across the servers in the semiconductor (GPU) for the CPU and graphics. Is that a mobile, as well as the server · IoT, etc. can be a decisive force in the SEC want to diversify our non-memory semiconductor products. Current System LSI Division is organized mainly gotta smart devices, components, such as a mobile application processor (AP) or camera sensor (CIS).


http://economy.hankooki.com/lpage/industry/201503/e20150317173417120250.htm
 

Idontcare

Elite Member
Oct 10, 1999
21,118
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The potential for a huge cash injection and backing the scale of Samsung behind AMD would be a boon for us customers. Seems unlikely that Samsung would take on the risks though.
 

ThatBuzzkiller

Golden Member
Nov 14, 2014
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So this is a potential acquisition ?

I'd also have to assume that they'd have to renegotiate with Intel to license some patents for x86 extensions ...
 

Shehriazad

Senior member
Nov 3, 2014
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I would honestly not mind this.

Samsung has the funds, AMD has the knowledge but lacks the funds to put it to good use or to perfect it.

This could end up being good...giving AMD the funds it needs to keep R&D going properly, Samsung gaining "cheap" access to all future products of AMD with the addition of GCN in phones?!?

Also...doesn't Samsung have its own fabs? That's yet another nice plus.


For any "camp AMD" fan...this would be a good thing....but it's questionable that this will actually happen...isn't it?


But if ANYONE were ever to "buy" AMD...then Samsung would be a company that I would gladly see AMD move to... Korea joined the semiconductor business very late...but they really managed to turn into a powerhouse...so why not
 
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DrMrLordX

Lifer
Apr 27, 2000
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Hmm. This idea has been floated before, though it is potentially at odds with all the noise that's being made about AMD receiving R&D cash injections from the ICT.

As for how AMD could be bought by another company, Samsung could arrange to sell themselves to AMD in much the same way that Burger King sold themselves to Tim Horton's. In reality, Samsung executives would take over management of the company and Samsung shareholders would wind up with a majority of power, but on paper . . . well, you know . . .
 

geoxile

Senior member
Sep 23, 2014
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I get the feeling this has been spurred on by the rumors of the Chinese investing in AMD. The vultures have been circling waiting to see what will happen.

But in any case, it seems to be little more than a rumor right now so I guess we'll see what happens.
 

Shehriazad

Senior member
Nov 3, 2014
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I still see Intel taking a serious look at buying AMD...

Yea...you see...the thing with Intel...that is not going to happen. Even if Intel wanted it...no one is going to let an already monopoly company just buy its' only "competitor".
At least I don't think that this would be realistic.

And if it were between Samsung and Intel...I'd take Samsung any day...sure, Intel be rich as hell n stuff...but Intel would just use a few of the patents etc and then let the rest rot away while Samsung would be likely to actually try and get something done with what they have aquired.
 

Madpacket

Platinum Member
Nov 15, 2005
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American company buying another American company is more likely to happen. Competition in the mobile space is enough of an excuse to get around the X86 monopoly issue. We will see.
 

podspi

Golden Member
Jan 11, 2011
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American company buying another American company is more likely to happen. Competition in the mobile space is enough of an excuse to get around the X86 monopoly issue. We will see.

What's the motivation? At this point, like it or not, AMD doesn't put enough competitive pressure on Intel to make buying them worthwhile, and AMD doesn't really have enough technology that Intel doesn't, at this point.


Granted, AMD is certainly ahead of Intel when it comes to GPU tech, but not far enough ahead that would be worth purchasing the entire company over. If it is between AMD having to make it on their own or getting swallowed up by Intel, my money is on them going at it alone.
 
Jan 6, 2015
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Samsung was prominent member of HMC with Micron, Intel among others and it was thought not probable in forums that they were interested in HBM.

But they probably were given an early demonstration of memory with the new Radeon 390x series and were so impressed with very high performance in small packages that they became determined to manufacture HBM and gave impetus for possibly merging acquiring AMD.
 

ehume

Golden Member
Nov 6, 2009
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Would the company that buys AMD still have x86 licenses? I recall reading that a successor would lose those. So maybe AMD should "buy" Samsung.
 

DrMrLordX

Lifer
Apr 27, 2000
21,805
11,161
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Would the company that buys AMD still have x86 licenses? I recall reading that a successor would lose those. So maybe AMD should "buy" Samsung.

I agree, it'll be something akin to a tax inversion strategy if it ever happens.
 

jpiniero

Lifer
Oct 1, 2010
14,839
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Would the company that buys AMD still have x86 licenses? I recall reading that a successor would lose those. So maybe AMD should "buy" Samsung.

Presumably if Samsung buys it they won't care about the x86 license.

Edit: Given AMD's debt it'd probably be more like Samsung buying their tech and not the company itself. They could leave the x86 license with the corpse of AMD so the debt holders could get something back from the consoles.
 

turtile

Senior member
Aug 19, 2014
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What's the motivation? At this point, like it or not, AMD doesn't put enough competitive pressure on Intel to make buying them worthwhile, and AMD doesn't really have enough technology that Intel doesn't, at this point.


Granted, AMD is certainly ahead of Intel when it comes to GPU tech, but not far enough ahead that would be worth purchasing the entire company over. If it is between AMD having to make it on their own or getting swallowed up by Intel, my money is on them going at it alone.

It would be worthwhile for Intel. They are paying nVidia 1.5 Billion plus patents over 6 years to use nVidia's patents.
 

ShintaiDK

Lifer
Apr 22, 2012
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It would be worthwhile for Intel. They are paying nVidia 1.5 Billion plus patents over 6 years to use nVidia's patents.

How would that be worthwhile? 2B$ debt, 2-3B$ buyout, R&D that is hammered into the ground and needs to be restated. some 80-90% of the workforce you need to fire. Contracts and what else with other companies. Whats the ROI on that? 30 years?
 

Idontcare

Elite Member
Oct 10, 1999
21,118
59
91
How would that be worthwhile? 2B$ debt, 2-3B$ buyout, R&D that is hammered into the ground and needs to be restated. some 80-90% of the workforce you need to fire. Contracts and what else with other companies. Whats the ROI on that? 30 years?

To be fair, when you put it that way, it sounds like the quintessential M&A opportunity for CEOs of large and otherwise disorganized businesses such as IBM, HP, or Sony!
 

MisterMac

Senior member
Sep 16, 2011
777
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Intel would sooner purchase AMD - to not have to deal with samsung gaining access to whatever AMD offers, x86 or not.

AMD in the spot it is - is Intel's dream.
Samsung would perhaps not put that in danger on certain fronts(desktop) - but it sure as hell might do it on others.

...The thing is, even if Samsung bought AMD - it wouldn't be for us geeks.
it'd be for everyone else.

We'll still loose out while other product-types\markets would gain.
 

ShintaiDK

Lifer
Apr 22, 2012
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Think on what would Samsung want AMD for. List up the reasons. Its not their CPU team. So what else, and would the cost be acceptable.

if anyone bought AMD, they would most likely massacre the company in a salvage operation.
 
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Anon_lawyer

Member
Sep 8, 2014
56
1
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Would the company that buys AMD still have x86 licenses? I recall reading that a successor would lose those. So maybe AMD should "buy" Samsung.

Unless Intel's lawyers screwed up, I doubt that would matter. A standard change of control provision would cover any form of merger, regardless of who "buys" who, or which entity survives.

When you see the tiny company "buy" the big company, it's usually for a tax reason (sometimes it saves big money!) or maybe a regulatory reason (regulators usually don't have change of control provisions).
 

NTMBK

Lifer
Nov 14, 2011
10,269
5,134
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Think on what would Samsung want AMD for. List up the reasons. Its not their CPU team. So what else, and would the cost be acceptable.

if anyone bought AMD, they would most likely massacre the company in a salvage operation.

Why wouldn't Samsung be interested in the CPU teams? Just because they've had a recent catastrophe largely caused by bad leadership, doesn't mean that there isn't still a lot of talent in the team. Surely better to keep the team intact, give them more resources (and potentially new leadership), and set them to work on custom ARM CPUs for Samsung. Remember that Samsung hired away a bunch of dissatisfied AMD engineers to try and build their own server CPU, they clearly value their expertise.
 

AllDayBreakfast

Junior Member
Feb 25, 2015
24
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Would an invesrsion strategy even work?

Per the terms of the agreement, Section 6.2 Termination for Cause (6.2(b)(7)):

the other party undergoes a Change of Control. For
purposes of this Section 6.2(b)(7), "Change of Control"
shall mean a transaction or a series of related
transactions in which (i) one or more related parties
who did not previously own at least a fifty percent
(50%) interest in a party to this Agreement obtain at
least a fifty percent (50%) interest in such party, and,
in the reasonable business judgment of the other party
to this Agreement, such change in ownership will have a
material effect on the other party's business, or (ii) a
party acquires, by merger, acquisition of assets or
otherwise, all or any portion of another legal entity
such that either the assets or market value of such
party after the close of such transaction are greater
than one and one third (1 1/3) of the assets or market
value of such party prior to such transaction.

http://corporate.findlaw.com/contra...agreement-advanced-micro-devices-inc-and.html
 
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Dribble

Platinum Member
Aug 9, 2005
2,076
611
136
Why wouldn't Samsung be interested in the CPU teams? Just because they've had a recent catastrophe largely caused by bad leadership, doesn't mean that there isn't still a lot of talent in the team. Surely better to keep the team intact, give them more resources (and potentially new leadership), and set them to work on custom ARM CPUs for Samsung. Remember that Samsung hired away a bunch of dissatisfied AMD engineers to try and build their own server CPU, they clearly value their expertise.

If all they want is people they just need to open an office near AMD HQ and start hiring. They'll have no trouble sucking up plenty of talent. Much cheaper and easier then buying a company.
 

ShintaiDK

Lifer
Apr 22, 2012
20,378
145
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If all they want is people they just need to open an office near AMD HQ and start hiring. They'll have no trouble sucking up plenty of talent. Much cheaper and easier then buying a company.

^^ This.

Only reason to buy AMD is if you want their IP and/or products. And lets be honest, its not for their products.
 
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