Raja Koduri will run the division.
AMD has created Radeon Technologies Group (RTG) to improve focus on graphics and immersive computing.
The company has appointed Raja Koduri to run the division, with Koduri reporting to AMD’s president and CEO Lisa Su.
Koduri will oversee the development of the company’s APU, discrete GPU, semi-custom, and GPU compute products.
The move is designed to strengthen performance in the traditional graphics markets and establish initiatives to lead in immersive computing opportunities in virtual reality (VR) and augmented reality (AR).
Su said: "We are entering an age of immersive computing where we will be surrounded by billions of brilliant pixels that enhance our daily lives in ways we have yet to fully comprehend.
"AMD is well positioned to lead this transition with graphics IP that powers the best gaming and visual computing experiences today.
"With the creation of the Radeon Technologies Group we are putting in place a more agile, vertically-integrated graphics organization focused on solidifying our position as the graphics industry leader, recapturing profitable share across traditional graphics markets, and staking leadership positions in new markets such as virtual and augmented reality."
Koduri is a graphics expert who worked with ADM for several years. He leads the company’s LiquidVR effort to create technology for improving VR experiences.
Koduri joined AMD from Apple, where he was director of graphics architecture.