Qualcomm buys AMD’s mobile graphics IP

Qualcomm today announced that it has acquired certain graphics and multimedia technology assets, intellectual property and resources from AMD’s handheld business. The acquisition is meant to enhance Qualcomm’s current failing multimedia capabilities, hopefully preventing the wholesale flight of cellphone OEM’s using their chips.

The $65 million deals also include the AMD teams working in areas including 2D and 3D graphics, audio/video, display, and architecture for mobile devices.

“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,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. “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 (SoC) products.”

AMD is currently in the process of massive cutbacks, having let go 3300 employees over the last year. AMD aquired ATI in 2006, and its likely the tecnhlogy AMD sold to Qualcomm is sourced from this area.

Qualcomm is competing in the mobile space against Nvidia’s Tegra processor, a processor which has not proven itself on the market yet but which is rumoured to have already attracted attention of OEM’s like HTC in favour of Qualcomm’s offerings.

Read the full press release at Mobileburn here.

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