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Rumour Mill : IBM to buy AMD

Rumours of IBM making a move to snatch beleaguered chip manufacturer AMD have caused the latter's share price to rise by 8 percent.

AMD has had an annus horribilis in 2007 as arch-rival Intel has been increasing its lead and market share in the microprocessor market.

Intel has been able to ramp up its processors' performance and has executed platform transitions flawlessly.

Many analysts however consider that the acquisition would be a non starter for IBM because the company has been disinvesting itself its hardware portfolio over the years.

Big blue sold its storage division to HGST, its printer branch to Ricoh and its Personal Computer and laptop division to Lenovo.

AMD would bring a number of interesting technologies onboard and provide IBM with more room for manoeuvre.

In July 2006, AMD merged with graphic chip producer ATI in a deal, valued at USD 5.4 bln, which pushed AMD's shares down.

IBM already has a microelectronics division which has produced processors in the past and worked on the PS3, Gamecube, Nintendo WII and the Xbox 360.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.