AMD Restructures to Combine Graphics and Chip Units

Chipmaker AMD has taken the final step in integrating graphics developer ATI, merging it with chip manufacturing...but don't expect the ATI name to go away.

Struggling chipmaker AMD has been trying all sorts of new business tactics to keep itself afloat after two solid years of losses in its competition with Intel—including spinning off its fabs into GlobalFoundries so, technically, AMD has no manufacturing capability of its own anymore.n Now, the company has announced a major restructuring that combines its chip unit with the remnants of graphics developer ATI in a move to spur development of integrated graphics and computing processors. And as part of the reorganization, the senior VP of AMD’s microprocessor group, Randy Allen, will be leaving the company.

“We are tightening our focus on delivering the winning products and platforms our customers want based on AMD’s industry-leading microprocessor and graphics technologies,” said AMD president and CEO Dirk Meyer, in a statement. “The next generation of innovation in the computing industry will be grounded in the fusion of microprocessor and graphics technologies. With these changes, we are putting the right organization in place to help enable the future of computing.”

As part of the reorg, AMD is creating three other operating groups in addition to the combined chip group: one will focus on technology research, one on sales, and one one marketing.

AMD acquired graphic developer ATI Technologies back in 2006; it has since had to repeatedly write down the value of the transaction as the business has failed to live up to AMD’s expectation—AMD also sold off ATI’s mobile graphics technology to Qualcomm early this year.

AMD offered no reason for Randy Allen’s departure.