IBM may Create more Formal Chip Manufacturing Ties with AMD

[Thermopylae_480]

Industry analysts, and sources, have speculated about the possible creation of a more formal relationship between IBM and AMD. Such a relationship may result in a possible merger between the two companies in the future. An IBM takeover, or joint venture company may result. Such a merger would allow IBM to maintain ties to some management in the computer industry as the company moves more toward technology services. The creation of some sort of more formal association could help inject confidence into AMD which has not reported a quarterly profit since mid-2006. IBM and AMD have been technology partners for several years, and are currently completing a joint manufacturing plant in Malta.

Source: FT.com

[Silverel]

Awwww yeaaaaah. C'mon Big Blue, take a bite... you'll like it.

[magibeg]

I'm not sure if i like all this merging or not, i realize they're all just trying to fight the intel giant but still... less companies is a slow approach to monopolies.

[WhiteLotus]

The wonders that could come out of this!

[panchoman]

now if they could just make a socket am3 oct-core cell cpu(making the cpu would be a piece of pie for ibm.. its the socket bit).. big blue and amd would completely kick ass.

[tkpenalty]

Cell Phenom... we already know how powerful cell processors are. Light at the end of the tunnel for AMD?

[flashstar]

SWEET! I was hoping for something like this. IBM could truly mash Intel and provide that extra boost to Phenoms, etc. to overcome the Core 2 Duo. It would benefit consumers due to lower prices. If Big Blue can do what they did for consumers with the Thinkpad, they will work wonders with the pc.

[happita]

This would definitely be a plus for both sides of the coin.
And lets not jump the gun on whether or not they can implement all the power & prestige that the cell processor has gotten praised for. Don't forget they did develop it for a console.

However, I'm sure IBM engineers can combine their knowledge of CPUs with AMDs and BAM! We get SUPERCPU!

[suraswami]

Sad to hear that AMD cannot by itself fight against the giant. Good to hear that another good (?) giant helping crippled company. It would have been different if AMD was smarter in the beginning, stopped rejoicing its victory in A64 days and worked behind to face the wounded TIGER.

[Thermopylae_480]

Remember guys, this is still just on the rumor mill.

[pentastar111]

Originally Posted by tkpenalty

Cell Phenom... we already know how powerful cell processors are. Light at the end of the tunnel for AMD?

I think so...Although I think AMD IS on the rebound with or without IBM...This "possible?" merger would definitely give them a much needed boost in the wallet...let the price wars begin

[MrW]

I'd support a partnership between IBM and AMD but not a merger or takeover. They usually result in less competition in the market, stagnated research/development, and higher prices.

[DaMulta]

Not a good idea, as soon as IBM started losing all sorts of money they would pull out. Then we would be left with just Intel, and new CPUs every other year at $$$$ prices.

[Kreij]

I don't think you would have to worry about stagnate R&D, IBM has always been on the bleeding edge of technology in many arenas.

I don't think, however, that a merger of the two (actually three if you count ATI) companies would "squash" Intel. While Intel has done there share of fumbling on past chips, they are no fools when it comes to new technology either. If I am not mistaken, their road map for 23nm process is in place and it would not surprise me if they already have working prototypes.

I also don't think that an IBM/AMD merger would stifle competition, I think it would make it more fierce, as it would force Intel to never rest and that would cause the same to be true for the IBM/AMD.

Just think, if Intel merged with NVidia and IBM merged with AMD/ATI, we would see one stunning battle of the titans for both processors and GPUs.

Now if only someone would come along to challenge Microsoft, we could get a big bucket of popcorn and relax and enjoy the show!

It's fun to speculate, no?

[candle_86]

actully makes perfect sense, IBM refuses to pay licensing fees for x86, but if they merge with AMD they just got the licesne. Still I think its a bad move, let AMD/ATI die off so the true kings can rule.

Also I don't see Nvidia merging with Intel, Intel like AMD would concentrate on CPU's over video. Plus Nvidia is one of its best years since 2002, why merge if they are outselling AMD at every price point and dominating the market?

[erocker]

So there is no competition? Ridiculous! Let AMD/ATi get it's butt in gear so there is something to compete with Intel and Nvidia. It drives hardware to go faster and prices to go lower. What's wrong with that?!

[candle_86]

Originally Posted by erocker

So there is no competition? Ridiculous! Let AMD/ATi get it's butt in gear so there is something to compete with Intel and Nvidia. It drives hardware to go faster and prices to go lower. What's wrong with that?!

it does not, look at the past when ATI was putting up a fight at prices compared to now. Or look at how prices with AMD and Intel compared when both where fighting it hard. Its when one sucks prices fall and the other follows if both are good, both ramp prices up

[erocker]

I don't know if you just like to incite arguments, but you are completely wrong.

[Kreij]

@Candle 86 : No I do not see NVidia merging with Intel. Intel is pouring money into its graphics division and we may see a thrid competitor in the GPU arena soon anyway.

@Erocker : Mergers many times create stronger companies who can compete more efficiently. Look at AMD at the moment. While they are not clinging on for dear life, it will only take one more failed attempt to one-up Intel and their stock will start look like our thermometers have lately.

I really want AMD to succeed. Getting cash infusions from foriegn investors is not going to cut it if they cannot produce a superior product. They can focus on the mid-range market (which is a cash cow for most companies), but they will be relegated to also-ran status forever if they do not try to compete at the high-end level. AMD needs to do something radically new to change the landscape of the battle.

As always, just my opinion.

[erocker]

Originally Posted by Kreij

@Erocker : Mergers many times create stronger companies who can compete more efficiently. Look at AMD at the moment. While they are not clinging on for dear life, it will only take one more failed attempt to one-up Intel and their stock will start look like our thermometers have lately.

Sigh.. Yes, I agree, but that wasn't my point...

[Kreij]

Originally Posted by erocker

Sigh.. Yes, I agree, but that wasn't my point...

Oh, sorry. Wasn't sure what you were getting at.
How's the weather by you. Pretty cold here up north a bit.

[erocker]

-4f. I really hate this cold. Even though it's 68f in the house there's always that cold feeling. Driving to work for 30 minutes it pretty much stays cold in the car. And at the shop, you're lucky to find a place that is not cold. Brrrrrrrr!! Though, I've quit drinking for the most part, a little brandy in my coffee makes things a little easier these cold days.

[Kreij]

I know what you mean. I keep the beer in the garage and I have to let it warm up a bit in the house before I open one. I drink imports so at least I do not have to worry about them freezing solid. It's supposed to get up to aboout 35F Monday here, so you should be near 40F.

On topic ...

I am really a little perplexed at what will happen in the next year. We have seen quite a bit of merger craziness happening for a couple of years now, but that will only go so far.

I have the feeling that something is going to break (something completely new) that is going to set everyone scrambling to their drawing boards again soon. I am not sure why I have this feeling, but I have it none the less.

I have no idea what it will be. That is unfortunate because if I had any idea I would be making a few investments.

Oh well, I am completely comfortable with "happy" as opposed to "rich".

[candle_86]

I said Nvidia wouldn't merge and have no reason, not that they would

[Kreij]

Originally Posted by candle_86

I said Nvidia wouldn't merge and have no reason, not that they would

Yes, I was agreeing with you. From both company's perspectives they have no reason to do so at this time as far as I can tell.