AMD Could Potentially Get 19B investment

by Hilbert Hagedoorn on: 02/11/2015 10:48 AM | source: | 13 comment(s)

More news from AMD today as it seems the company might get a nice cash injection. Loongson Technology, a CPU joint venture between Beijing-based chip designer BLX IC Design Corp, the Chinese Academy of Sciences and the Institute of Computing Technology, is set to make key investments into AMD's product lines and technologies.

Loongson and AMD have worked together before in the past. AMD’s HyperTransport and PCI South as well as North bridges were in previous Godson silicon, so for Loongson AMD is not entirely foreign territory. The two opened an R&D center in December 2003 in order to develop what the two hoped would be something to counter the goliath of Intel.

Investing in AMD’s various technologies and product lines would be a much easier transaction for Loongson. It would not have to deal with the regulatory burden the US government might impose, nor would it need to negotiate an x86 license from Intel (NASDAQ: INTC). It is not yet clear what the end result of such investments might look like, but it could be that Loongson markets future Godson systems with more AMD inside — such as GCN GPU architecture.

Loongson earns their reputation for its line of MIPS-based Godson processors. The Chinese firm has reserved 120 million yuan (around US$19.2 billion) for a series of acquisitions and strategic investments.

How much money AMD is going to retrieve we do now know, but it could be substantial.

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alanm
Senior Member

Posts: 11262
Joined: 2004-05-10

#5011883 Posted on: 02/11/2015 12:41 PM

120 billion yuan @ 6.2 yuan/dollar = $19.35 billion.

aless83
Senior Member

Posts: 261
Joined: 2011-05-18

#5011894 Posted on: 02/11/2015 12:58 PM

and it is not 19 million

Actually, it is. 19 225 663.72 USD to be exact.

Ryu5uzaku
Senior Member

Posts: 7202
Joined: 2006-09-24

#5011901 Posted on: 02/11/2015 01:14 PM

I think theres a typo in the yuan amount. Most likely that should be in billions.

These investments are set to begin immediately. Loongson’s targeted investments will be funded by a $19 billion war chest (120 billion RMB) that the company has set aside for such ventures. <--- from another article

http://www.vrworld.com/2015/02/09/amds-real-china-play-strategic-investment/

reix2x
Senior Member

Posts: 538
Joined: 2010-01-20

#5012052 Posted on: 02/11/2015 05:00 PM

Very good for AMD, maybe in the future we will see some competition in the CPU market. (hopefully)

schmidtbag
Senior Member

Posts: 6570
Joined: 2012-11-10

#5012162 Posted on: 02/11/2015 08:02 PM

Let's hope AMD does get this. Even if only 1/5 of that would be profits to them, that's still a major contributor to the company.

Nice to see smaller companies team up like this too.

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