AMD buys ATI in $5.4bn deal

Takeover will result in innovative processors with advanced integrated graphics, AMD says

Chipmaker AMD is buying graphics hardware specialist ATI in a $5.4bn deal that the company says will create a "processing powerhouse".

The deal will allow AMD to provide innovative products to meet the growing demand for chipsets and motherboards with advanced built-in graphics, a company statement said.

It went on: "In 2008 and beyond, AMD aims to move beyond current technological configurations to transform processing technologies with silicon-specific platforms that integrate microprocessors and graphics processors to address the growing need for general-purpose, media-centric, data-centric and graphic-centric performance."

But the new combined company will also offer "discrete products", which means that it will also be offering components for standalone graphics boards.

The takeover will result in "a new and more formidable company, determined to drive growth, innovation and choice for its customers, particularly in the commercial and mobile computing segments and in the rapidly growing consumer electronics market," the statement said.

ATI president Dave Orton said: "This combination means accelerated growth for ATI, and broader horizons for our employees. All of our product lines will benefit."