The Inevitable Sadness of AMD

It would seem that the arms race between AMD and Intel has ended, and the victor is Intel. The most recent news to come out of AMD’s headquarters is that they are going to stop researching and producing high-end CPU’s. AMD will instead change the focus of their company.

The first rumors out were speculating that AMD was out of the desktop processor game completely and moving towards mobile devices, but the day after these rumors appeared AMD made a statement saying that they will not be stopping their entire line of processors, but not moving forward with new high-end equipment. These statements are coming off the fresh “failure” of the bulldozer chipsets which had so much potential. AMD has also announced that they laid off nearly twelve percent of their workforce. In AMD’s statement they stated that they will be focusing on their x86 processor models and mobile technology moving forward.

Consumers are now left with major questions: Who will step in the ring and try to contend with Intel? How long until the first anti-trust lawsuit against Intel appears? Who will drive Intel to continue on its track record of excellence and force them to be competitive in their pricing? It does not seem like a feasible option for any processor company at this time to do so.

Sources:Softpedia.com - AMD Not Competing with Intel Anymore, Goes Mobile Softpedia.com - AMD Still Committed to x86, Whatever That Means Mercurynews.com - AMD struggling to reinvent itself

Western Digital's Deal to Acquire Hitachi's HDD Business Approved

Western Digital has just secured conditional approval from the European Union's competition regulator to purchase Hitachi's hard disk drive business for a grand total of $4.3 billion. This was only made possible, however, after Western Digital agreed to sell several of its production operations.

Western Digital, which just so happens to be the world's second largest competitor in the hard disk drive (HDD) sector, and Hitachi, which just so happens to be the third largest, unveiled the deal back in March. The deal itself is aimed at giving the United States company a competitive edge in developing next-generation information storage technology.

This decision by the European Commission confirmed a story published last week by Reuters. According to European Union Commissioner Joaquin Almunia in a recent statement, "The proposed divestiture will ensure that competition in the industry is fully restored before the merger is implemented."

Western Digital did promise to sell essential production assets for the manufacturer of 3.5" disc drives, including a production plant, according to the Commission, which cited reduced competition in the sector after Seagate Technology bought Samsung Electronics' hard disk drive business recently. In addition to that the company agreed to transfer or license intellectual property rights to the business to be sold off. What's more is that Western Digital will also transfer staff and the supply of HDD components to the unit.

Western Digital is unable to complete the deal until it finds an appropriate buyer for the unit, which will then need to be approved by the regulator, according to the commission. If Western Digital is unable to find a suitable buyer, it stands to reason that this deal, although approved, will never actually come to fruition, which could be disappointing for both companies.

Source: Reuters - Western Digital cleared to buy Hitachi disk drive business