Mobile chipmaker Qualcomm has acquired the handheld technology business of AMD for $65m.
Qualcomm has acquired graphics and technology assets, intellectual property, and other resources from AMD, and has offered employment to design and development teams working on 2D and 3D graphics, display, audio, and video projects at AMD. It said it expects the acquisition to be accretive to earnings by the second half of calendar year 2010.
AMD said the spin-off will enable it to focus on its core businesses of making x86 processors and high-end graphics chips. It acquired the handset business when it bought ATI in 2006.
Steve Mollenkopf, executive vice president at Qualcomm and president at Qualcomm CDMA Technologies, said: This acquisition of assets from AMD’s handheld business brings us strong multimedia technologies, including graphics cores that we have been licensing for several years. Bringing this technology in-house creates even greater synergy as we seamlessly integrate the best-in-class multimedia performance AMD offers into our system-on-chip products.
Robert J. Rivet, chief operations and administrative officer and chief financial officer of AMD, said: With the sale of these handheld technology assets and resources to Qualcomm, we are better able to focus on our core business and leverage our unique position as a leader in both x86 computing and high-end graphics.We believe the talented AMD Handheld employees will be a great asset to Qualcomm.