The rumor de jour is that AMD will announce an ARM license tomorrow, and move the company in the direction of cell phones/tablets/widgets and other zero margin niches. Given the competition in those markets is much greater than AMD has ever faced before, Intel included, and AMD has zero wireless experience, not to mention patents, we think this is a monumental mistake.
AMD has already set the groundwork for ARM integration, but they would be much much better off as an IP provider than a chip maker. Short of buying an established player, we can’t see this working out too well. Buying an established player, if it is financially possible, would be a really messy integration challenge, something AMD is ill prepared for now.
What will happen? Will things all work out in the end? Will all of this be a distant but painful memory when the Q1/2012 numbers are released? Who knows, but the first official clues about the new direction will come out tomorrow morning, and it will be interesting. Where it goes from there is anyone’s guess. Either way, our condolences to all those who lost their jobs, SemiAccurate hopes things work out well for you.S|A
by Charlie Demerjian | SemiAccurate