Rumors have been swirling throughout the tech industry today as a report was released claiming that Samsung Electronics Co. LTD (OTCMKTS:SSNLF) could potentially acquire worldwide semiconductor company Advanced Micro Devices Inc. (NASDAQ:AMD) in an attempt to go head-to-head with industry giants Intel Corp (NASDAQ:INTC) and Qualcomm Inc (NASDAQ:QCOM)
The claims stem from a South Korea report stating that the Seoul-based conglomerate is supposedly pursuing a buyout of the semiconductor company in an attempt to contest the two largest industry giants. When considering what the two parties have to offer one another, the alleged Samsung purchase of AMD seems increasingly reasonable.
Savvy in microprocessors, chipsets, graphics products/accessories, AMD has become one of the market benchmarks for tech enthusiasts and performance seekers. The company plays a huge role in its sector, and is one of the world’s largest suppliers for x86 architecture and GPU’s. Its Radeon GPU series, “Zen” CPU architecture, and 64 bit ARM “K12” have garnered a large amount of attention for its high-end products, and AMD’s well maintained relationships with big-name PC suppliers has earned the company a considerable amount of credibility despite poor fiscal showings.
Should AMD be acquired by Samsung, the company would be a beneficiary to the plethora of resources at Samsung’s disposal, including operating cash and sufficient resources. The company would be armed with assets ample enough to enter the mobile SoC sector as well as upgrade its x86 parts, especially in APU’s, integrating them with tablets and similar devices. The company would also be able to power its GPU division, potentially capitalizing on competitor market share from rivals like Nvidia Corporation (NASDAQ:NVDA) and increasing company leverage. Acquisition by Samsung would translate into AMD having access to market avenues that were not available in a prior scenario.
AMD is benefitting to a considerable degree from being acquired, but Samsung has a lot more to gain from purchasing the company. Should a deal be finalized, Samsung will be the owner of a diverse multitude of product patents. The acquisition of AMD technology can prove to be a profitable decision, regarding future growth and market positioning. Samsung would be able to compete directly with Intel and Qualcomm to unseat the semiconductor titans with AMD high performance GPU and CPU’s.
