Qualcomm this morning said it’s buying assets from AMD’s handheld graphics division for $65 million.
Qualcomm already is a licensee of the technology, as is Freescale Semiconductor. AMD was looking to divest the graphics side of its consumer electronics business to focus on chips for computers and gaming devices, officials said.
AMD spokeswoman Jo Albers said the division had 400 employees, 140 of which are being laid off, while an unspecified number are being transferred to other jobs.
Qualcomm is scheduled to announce its earnings for the first quarter of 2009 on Jan. 28. A company spokesperson could not be reached for comment.
Avian Securities’ Avi Cohen gave a blunt assessment of the deal for AMD. “…we see this sale as a way for the company to raise cash as it continues to struggle not only to make it through this global economic difficulty but also to keep up with [Intel],” he wrote.
Filed Under: Infrastructure