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IT manager world: Radical killed AMD

August 12, 2008

　　With ” radical ” the opponent with politic a lot of more formidable than oneself challenge, AMD paid heavy price.

Li Yunjie / civil

Newspaper of money of the 2nd quarter signed up for deficient AMD again 2008, outstanding achievement did not amount to wall street analyst to anticipate not only, and already was successive 7 quarters loss, AMD is forced to change handsome — Lu Yi wisdom leaves off his post, currently hold the post ofheart of presiding operation official to overcome CEO of replace of Er of · plum Ye.

And two years ago, be Lu Yi wisdom and AMD most the period of scene, it is below leader of Lu Yi wisdom, the market share of AMD ever reached the culmination of its throughout history, depend on outstanding product, AMD expands in the portion on chip market ceaselessly, let a person sense the vigor of its aggressive from this. Contrary, the expression of powerful Intel gives a person the sense of late evening however. But the reason that this also gave AMD underestimate the enemy and ambition to expand it seems that.

In July 2006, AMD announces to buy ATI with 5.4 billion dollar. Be this one ” radical ” buy strategy, and the heavy serious offence of product side is broken later, brought about Lu Yi him wisdom to pay bitter price with AMD.

The end that AMD buys ATI is the graphical processing ability that enhances chip, the chip set business of oneself expands further in the meantime. Before buying ATI, AMD is dedicated all the time at microprocessor business. Be in early when AMD announces to buy ATI, a lot of analysts trade to this raise doubt, they fear AMD is insolvent trade the debt of a huge sum of generation, the value that still thinks ATI increases to AMD far be not a patch on buys the price. Before buying ATI, AMD has cash to have 3 billion dollar only oneself, can’t pay 5.4 billion dollar sum and buy ATI, then to Magenshidanli loan 2.5 billion dollar, bore certain debt. And, AMD oneself product line spins, the price war with Intel still will need many capital support. However, the capital problem that AMD faces to oneself at that time appears underestimate.

The meeting after industry fears AMD buys ATI generally still is dyspeptic, and, the attack that right now Intel has begun pair of AMD ” had reaction ” . If where,digest ATI while resist of Intel strike back, also be the major difficult problem that AMD faces. But the AMD with full at that time self-confidence appears to these problems disapprovingly.

In fact, buy this before long, intel was increased strike back strength. The cruel with Intel new have the aid of farsighted platform, started the most frequent product on the history to change plan, 2006 ever ” rolled out many 40 processor record-breakingly inside 150 days ” . Two big rival arrive from odd nucleus, double nucleus in processor of 4 nucleuses contend for the speed that go up ” contest ” , ceng Cheng is the one gale scene of course of study of the IT a year ago. In the price war that has in as powerful as actual strength Intel and speed race, AMD ” vigour is hurt greatly ” , face Intel to be tasted newly release cycle and frequency faster and faster, AMD cannot roll out new product on time quite however, because this is in predicament in.

Intel released 4 nucleuses processor first in November 2006, releasing the spot, the server OEM manufacturer of domestic and international mainstream gathers, the honor that Intel is gallopping and numerous star holds a month in both hands when An Tengfa cloth be able to emersion. Under photograph comparing, industry expects to be worth extremely fast AMD Barcelona processor to be deferred again and again however, appear serious error. AMD rolled out code name to be processor of 4 nucleuses Opteron in September 2007, later than original plan half an year; At the beginning of December 2007, AMD admits Barcelona existence flaw, the time of batch shipment remit to this year. In the meantime, AMD also admits the price that buys ATI of graphical chip manufacturer at the outset is exorbitant, the trade that will cancel ATI praise value.

From actual strength and financial capacity, AMD and Intel are absent an amount class, what AMD realises adversary again is powerful. Those who face Intel is strong, AMD warded off blows hard, must abandon previously ” the performance that turns new rate, newer than going all out product than going all out ” radical strategy, and put focus in how to realize gain to go up.

Announcing newest money signs up for while, AMD announces to exit the equipment on the palm and market of digital TV chip. For this, AMD will be one-time defray 876 million dollar, hold the majority of specified number of loss of the 2nd quarter. This year in April, AMD Lu Yi wisdom ever expressed the CEO at that time, restore gain for cut cost, AMD considers to exit do not have the strategy meaning and not the blame core business of gain. And what microprocessor branch is in charge of before this is new hold the post of Er of CEO plum Ye assume office, also be to be AMD by speculation ” regression ” the signal to core business.

opposite AMD, this contest is injury and fur only to Intel is short painful, AMD is the length that harms whole airframe painful — the 7th when release in AMD ” deficit money signs up for ” before two days, intel releases money of the 2nd quarter signed up for 2008 however very ” bright beautiful ” : Net profit grew 25% , exceed an analyst to anticipate. As two adversary between of chip war appease, intel replies again before level of high profit margin.

Although AMD often also can roll out a few better products and design, let Intel unaware, but because actual strength differs very far, in the long-term contention battle of chip market, AMD lags behind at Intel all the time. Chip industry all through the ages is regarded to be ” swallow gold ” industry, want those who implement product and technology to change, need has abundant capital actual strength. This decided AMD is in the argue with Intel, adopt means of radical confront the tough with toughness to cannot be taken.

AMD must endure ” the cure that blow bone is hurt ” painful. ■

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Written by ITTech · Filed Under Instant Technology