They were in big demand at last week’s Computex show now US Company Advanced Micro Devices (AMD) has scored orders from Samsung who will license its graphics technology for use in smartphones and tablets.
AMD who is fast stripping market share from Intel has confirmed that the Samsung deal is at this stage limited to smartphones however ChannelNews understands from Taiwanese sources that Samsung could also end up using AMD technology in their PC range.
The deal is worth millions of dollars in licensing revenue to the U.S Company who has seen their shares climbed 7.5% on the news, Samsung shares rose 3%.
According to sources, the next generation of Samsung devices that have the AMD processors will be ideal for mobile gaming and graphics-intensive applications, the losers are Nvidia ARM and Qualcomm.
Bloomberg claimed that under Chief Executive Officer Lisa Su, AMD has been concentrating on winning back lost share in PCs and server computers by revamping its products for those markets.
Licensing its technology to Samsung, whose own chip unit supplies only a portion of its mobile division’s needs, will provide AMD a way to participate in the massive market for smartphone parts without the risk of investing directly.
AMD’s rebounding earnings and the promise of market share gains have helped its stock rally almost 50% this year.