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Soleron on 19 January 2009
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NJ5 said:
Groucho said:
Scary for the next XBox. NVidia and MS don't get along very well anymore. If ATI suffers from this, the next XBox could be delayed in a big way.

ATI could still survive even if AMD goes under I guess... Depends on how much consolidation there was between AMD and ATI.

However I think AMD may be playing things smartly by spinning off manufacturing... It should make it easier to survive a potential bankruptcy without having to shed critical assets in a hurry.

 

Yes, I think ATI would be spun off or sold off in the event of bankruptcy (though neither Intel nor Nvidia would be allowed to buy it). It's the only profitable part of AMD.

The fab spinoff was a smart move because only the Arabs have the confidence to (effectively) lend AMD cash during this recession (the banks certainly wouldn't.) They still maintain 50% voting stake in the fabs, will be the majority customer for sure especially after ATI starts production there, and get the capital to maintain process parity with Intel which takes serious cash that AMD doesn't have.