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Qualcomm to Possibly Purchase AMD

To an extent, I was actually very surprised that Qualcomm was looking to purchase AMD. AMD’s shares rose by nearly ten percent after rumors rose that chip-maker, Qualcomm, could possibly be thinking of purchasing AMD. The rumors were based off of an announcement that AMD had made earlier this week on Tuesday. The company confirmed to ChannelBiz that John Byrne had been appointed the Chief Sales Officer and all of the sudden there were some really positive posts about AMD.

First rumors came from the Korean tech giant, Samsung Electronics which was planning to acquire AMD for its processing technology. There was a lot of chat on how AMD might just be a great buy-out target. Samsung’s interest in the company was rather unsuspected. Obviously it didn’t catch people off guard but with their interest AMD has never made chips for tablets or smartphones, the chips they make are for servers, desktops and laptops. Thus, AMD does not seem like it’d be much use to a company like Samsung Electronics.

Evercore Partners analyst Patrick Wang has mentioned that Qualcomm also had its eyes on the chipmaking company, AMD. Rumors had started that both Samsung and Qualcomm were either jointly involved in the deal while its also likely they were involved as a separately. Wang was quick to dismiss his own rumor, but there is that school of thought which says it all makes perfect sense, especially if they are working together in the deal.

Both AMD and Qualcomm lack fabs (a microchip fabrication plant), but Samsung on the other hand, doe snot. AMD has expressed interest in wanting to get into the ARM mobile market, and Qualcomm would be happy if it can give Intel a kicking in the x86 market. Samsung would eventually find itself making chips for both companies. By consolidating these three could really put the wind up on Intel’s side of things.

Of course, these are all just rumors and should be taken lightly. They’ve mostly come about since AMD just appointed John Byrne, but other than that, it is very well possible that we could eventually see a AMD takeover happening in the future. We’ll just have to wait and see what happens with this whole ordeal, it’ll be interesting to see if AMD just goes on on its own though. I wouldn’t mind getting a phone with one of their ARM processors they expressed interest in a while back.

I kind of wonder if Samsung’s interest in AMD has anything to deal with the rumors of the “flexible screen” or more widely known as the super AMOLED display screen. Either way, it’ll be interesting to see how this whole situation ends up playing out.

What do you think of Samsung looking into purchasing AMD? Is it likely since Samsung already has a fab or will Qualcomm take the lead and be the more likely company to purchase AMD? We’d love to hear your opinion and/or any updates you have on the situation. Let us know in the comments below!