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Home > News > IBM, Advanced Micro Devices, could set more formal chip ties, with merger possible, sources say

January 23rd, 2008

IBM, Advanced Micro Devices, could set more formal chip ties, with merger possible, sources say

Abstract:
Advanced Micro Devices and IBM may establish a more formal semiconductor tie-up than their current partnership, specualted industry sources and analysts in conversations with mergermarket. A deal could see IBM's microelectronics division merge with AMD at some point, possibly in the near term, said the sources.

Both listed AMD, based in Sunnyvale, California, and IBM, of Armonk, New York, are scheduled to report fourth-quarter results after Thursday's US market close. While their respective executives are expected to be asked about their ties, neither company is expected to announce a more formal tie-up yet. An IBM takeover of AMD or a joint-venture company now might make sense, the sources said, because of an industry slowdown, which would better prepare any new operation for the eventual recovery.

Source:
ft.com

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