AMD has just announced the licensing acquisition of its mobile 3D graphics technology by Qualcomm, a famous SOC (Silicon on Chip) manufacturer that has been finding its way to strengthen its position in handheld market. The licensing agreement will benefit both companies with Qualcomm able to design its future 3G mobile chips with AMD’s Unifier Shader Architecture graphics technology.
AMD thinks that the selling off is a right move so that it can focus more on its core business in computing market competing against Intel Inc in desktop and notebook markets. On the other hand, Qualcomm is expected to be able to leverage on AMD’s intellectual property and even utilize its technology expertise for future development on its SoC product lines. Some major improvements are expected in area such as 2D/3D graphics, multimedia and hardware acceleration video decode capability as they are becoming more important in the high end smartphone market.
Qualcomm spent $65 million for the acquisition which include all the related technology assets as well as option to have some of the expertise resources being hired under the new organization.