AMD denies reports that it’s planning to break up

22 Jun 2015

Chipmaker AMD has taken the unusual step of publicaly dismissing reports that it is planning to break up its business, saying there is “no such project” in the works.

According to Reuters, the tech giant is “at the initial stage of reviewing whether to split itself in two or spin-off a business,” according to unnamed sources.

The report stated that, in a bid to challenge Intel atop the microprocessor throne, one of the options is to separate its server business from its graphics and licensing business.

However, AMD has openly denied that any such plans are in place.

“While we normally would not comment on such a matter, we can confirm that we have no such project in the works at this time,” said a spokesperson to Extreme Tech.

“We remain committed to the long-term strategy we laid out for the company in May at our Financial Analyst Day.”

Reuters also claimed that, to facilitate such a break-up, AMD had hired outside assistance to thrash out the options. This, too, has been denied.

“AMD provided official confirmation that we have not hired an outside agency to explore spinning-off/splitting the company,” said AMD spokesperson Sarah Youngbauer to WCCFTech.

Indeed, the split example given above sounds fraught with difficulties, given the 2008 merger between AMD and ATI – which cost the former a bomb.

ATI’s graphics expertise added an integral cog to AMD’s armour, and one that is now so ingrained in its operations and agreements that it’s hard to see how they could separate the two again.

WCCFTech’s Khalid Moammer sees little likelihood in a breaking up of AMD’s businesses.

“AMD’s long-standing commitment to the philosophy of integration and its continued investment in the APU and microprocessor heterogeneity underlines this deeply intertwined relationship between both disciplines.”

What is definitely true, though, is the company is seeking ways to turn its finances around, having cut 7pc of its global workforce late last year.

Processor image, via Shutterstock

Gordon Hunt was a journalist with Silicon Republic