Mergers, Acquisitions and Takeovers Case Study

AMD's acquisition of ATI: Should Intel Worry

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Abstract:
The competitive challenges between the top two-chip maker Intel and AMD took a new dimension due to different strategic initiatives taken by both the companies. AMD not only attacked Intel with its server chips but also challenged Intel by diversifying into graphics chip category with its acquisition of Array Technologies Incorporated (ATI) Technologies in a $5.4 billion deal. But still AMD was worried with Intel’s antitrust practices. AMD blamed Intel with its illegal discount program due to which AMD’s PC market share dropped in Japan .So the debate was that whether AMD could get rid of Intel’s monopolistic foul play.

Pedagogical Objectives:

• To understand the global chip industry
• To analyse the competition between the top two companies in the Processor industry
• To analyse the antitrust practices of Intel.

Keywords : Advanced Micro Devices (AMD); Intel; Microprocessor; Chip; Computer; Semiconductor; Dell; IBM (International Business Machines Corporation); ATI (Array Technology Incorporated); Antitrust; RAM (random-access memory); Microsoft; Hewlett Packard (HP); Competitive Strategies Case Study; Lenovo; Monopoly

Contents : 
Pc And Chip Industry: Scenario In 2006
Potential Synergies
Some Blockbuster Mergers That Turned Up Dysfunctional
Segmented Information
Computing Platforms And Semiconductor Sequential Revenue