AMD's ATI acquisition won't affect India operations
India will figure prominently in AMD's $5.4bn acquisition of ATI Technologies, as both the semiconductor giants have their operations in the country.
By TNN |
BANGALORE/HYDERABAD: India will figure prominently in AMD’s $5.4bn acquisition of ATI Technologies, as both the semiconductor giants have their operations in the country.
AMD has its design centre in Bangalore while ATI’s R&D unit is located in Hyderabad. Though the exact contours of the merger and its implications in India are not known, both are expected to maintain their existing portfolios of operations as both concentrate on different segments.
“The combination will create a processing powerhouse by bringing AMD’s technology leadership in microprocessors together with ATI’s strength in graphics, chipsets and consumer electronics,” AMD said in a statement.
ATI Technologies India MD Dasaradha R Gude told ET that the combination would drive growth and the Indian operations would also be expanded. “Our work is complementary to each other and does not overlap. With this merger, we would also be able to address bigger markets,” he said.
The AMD statement said, “We cannot speculate on the implications of the merger for another 90-120 days, till the time integration is complete.” The engineering resources will be determined during the course of the transaction, it added.
ADVERTISEMENT
AMD launched its India engineering centre in Bangalore in ’04 and currently has close to 100 people. It plans to ramp up steadily to take the staff count to 150-200 people in 3-4 years time. The India centre works in tandem with the other design centres of AMD based in the US and Germany.ATI’s Hyderabad centre is its largest R&D outfit outside North America providing tailor-made digital multimedia solutions. Earlier this year, ATI had announced plans for increasing its investment in India from $50m to about $75m over a five-year period. It also planned to set up two labs at its Hyderabad facility and proposed to increase its headcount in the centre from 175 to about 500 over the next 12 months.
The two labs would be involved in working on digital television and audio solutions. The company’s Hyderabad facility was being projected as a centre of excellence for audio solutions. According to AMD, the merger would look at integrating microprocessors and graphics processors to address the growing need for general purpose, media-centric, data centric and graphic centre performance.
ATI Technologies Inc provides graphics-processing units for PCs, game consoles, cell phones, digital camcorders and high definition televisions. On the other hand, AMD provides processors across desktop PCs, servers and laptops.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
