The dark satanic rumour mill has manufactured a hell on earth yarn which suggests that AMD might be set to expand thanks to wodges of Chinese cash being thrown at it.
Since Intel paid AMD a billion for its anti-trust doings, AMD’s bottom line has not been that good.
However it is still in a good position to churn out processors and video cards. This would make it a good deal for a buy out. Some have suggested Samsung, but others Qualcomm.
But there is also one name which is cropping up on the rumour mill a lot more — a Chinese company called BLX IC Design Corp.
The sticking point to any buy out is that it would require the renegotiation of the licence with Intel over the x86 architecture, however an investment by a third company would work. Trade restrictions by the US government could prevent an outright purchase by an institution run by the Chinese government, but the US loves Chinese cash.
BLX has collaborated with AMD in the past, and does not need to buy the company to get what it wants.
The rumour, looked at by Tom’s Hardware suggests that BLX IC Design could buy a share of AMD . It controls the manufacturer of microprocessors Loongson Technology (MIPS architecture, family Godson), may make a strategic investment in technologies and products from AMD with the Chinese Academy of Sciences.
The Chinese chip designer could provide enough money to AMD to increase its capacity for research and development. The budget of AMD in research and development for this quarter will be about $ 200 million, well below the historical spending. As the company’s sales are shrinking, will not increase spending in this area, which could jeopardize its future and the long-term survival.
AMD bosses were in Beijing in late January and early February for meetings related to the possible deal.
Armed with Chinese cash, AMD could damage Intel with projects like Zen and K12 and put the fear of god into Nvidia. Its new partners could help it make inroads into the huge Chinese market and provide the Chinese semiconductor industry with much needed patents and R&D.
