China to invest $19B into AMD - no buyout on the cards

Orangey · 9 Feb 2015 at 20:23

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

VR World has learned China’s Loongson Technology, a microprocessor manufacturer that’s a 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 technologies and product lines. Loongson is best known for its Godson line of chips that use the MIPS architecture.

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.

Earlier reports indicated that China’s BLX intended to initiate an outright takeover of AMD, but this course of action is unlikely due legal concerns from Intel and regulatory issues that might arise from US authorities.

Combined with the stock price surge after the 970 debacle this might just be the shot in the arm they need. AMD stronk! :cool:

Gregster · 9 Feb 2015 at 20:33

I hope this happens. I would hate to see AMD go under and competition is good. AMD have played second fiddle for too long and a shakeup is very much needed.

Owenb · 9 Feb 2015 at 20:36

The title is a bit misleading. The company has a $19bn - they will only invest a faction of that, if any, into AMD.

The Running Man · 9 Feb 2015 at 20:37

Intel have really cleaned up the desktop market. Laptops too. ATi losing to nvidia. Without massive investment what chance does AMD have in the long run apart from a perennial runner up, until maybe Intel get too complacent. But would it already be too late ?

Ayahuasca · 9 Feb 2015 at 20:37

Owenb said:
The title is a bit misleading. The company has a $19bn - they will only invest a faction of that, if any, into AMD.

Someone who can read

richardmr2354 · 9 Feb 2015 at 20:38

wow great shot in the arm for amd thats for sure. This is great news for all gamers. We might in the future see some really big gains in tech development not to mention pushing nvidia and intel to up their game :cool:

theMilitant · 9 Feb 2015 at 20:40

I'm in favour of anything that will provide better competition and benefit the end consumer. I don't see AMD challenging Intel for the performance crown anytime soon, but I'd like them to have the financial stability to at least start thinking about making a move back into the high performance arena.

Gregster · 9 Feb 2015 at 20:42

Owenb said:
The title is a bit misleading. The company has a $19bn - they will only invest a faction of that, if any, into AMD.

Ayahuasca said:
Someone who can read

I didn't read it

But AMD do need that cash injection to become competitive again.

wazza300 · 9 Feb 2015 at 20:56

does this make amd communist's?

amdmatt might get a pay rise now

BS Dave · 9 Feb 2015 at 20:58

wazza300 said:
does this make amd communist's?

amdmatt might get a pay rise now

*redteam

richardmr2354 · 9 Feb 2015 at 20:58

wazza300 said:
does this make amd communist's?

Not really, the chinese are better captalists than the americans at the moment

andybird123 · 9 Feb 2015 at 21:04

Orangey said:
Combined with the stock price surge after the 970 debacle this might just be the shot in the arm they need. AMD stronk!

Surge?
Going from $2.7 to $3.05, when 6 months ago it was hovering aroung $4.5 and 2 years ago it was $8

richardmr2354 · 9 Feb 2015 at 21:08

I could see there share price rising to 8 dollars by the end of the year.What happend to the samsung rumours?

Judgeneo · 9 Feb 2015 at 21:15

BS Dave said:
*redteam

setter · 9 Feb 2015 at 21:16

wazza300 said:
does this make amd communist's?

amdmatt might get a pay rise now

More likely a wage deduction, all people being equal and all that.

Razor Time · 9 Feb 2015 at 21:26

Owenb said:
The title is a bit misleading. The company has a $19bn - they will only invest a faction of that, if any, into AMD.

They've just bought AMD some Intel CPUs to help them along a bit.

r7slayer · 9 Feb 2015 at 21:27

Owenb said:
The title is a bit misleading. The company has a $19bn - they will only invest a faction of that, if any, into AMD.

Well that's missleading too as Loongson was going to outright takeover/buyout AMD but for legal concerns this probably isnt happening. So instead Loongson is going to use the $19Bn fund they have as a resource to invest in various AMD technologies! As negotiating the x86 license would be a headache.

But this bit

Owenb said:
. they will only invest a faction of that, if any, into AMD.

Is your opinion so bit misleading.

They will invest more than "if any" is they are in other words, near enough taking over AMD just buying technologies instead. Gets around the whole legal issues imposed.

fs123 · 9 Feb 2015 at 22:27

The fact they wanted to buy the whole company means they will most likely do the next best thing by investing quite a bit into it. If it wasn't for the Intel licenses AMD would have been taken over long ago.

D.P. · 10 Feb 2015 at 00:50

Owenb said:
The title is a bit misleading. The company has a $19bn - they will only invest a faction of that, if any, into AMD.

I thought I was the only one who could read around here.

Anyway, sounds like possible good news and desperately needed before it's too late.

mmj_uk · 10 Feb 2015 at 01:31

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.

Did they hire the Duke Nukem Forever staff?