AMD’s Acquisition of ATI Technologies Patents Puts it in an Advantageous Position to Challenge Intel, ipIQ’s Analysis Finds

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AMD has made great strides over the past several years in improving and expanding its product base in an attempt to close the gap with Intel. Recently, AMD announced what many consider to be a blockbuster deal with the acquisition of ATI. ipIQ analyzed the transaction from a patent perspective: What is the impact of the ATI acquisition on the value of AMD’s technology in the marketplace? Is ATI the best acquisition target for AMD to pursue and how does it affect their market positioning? What might be the next move by AMD or by a competitor to stalemate AMD?

The recently announced $5.4 billion acquisition of ATI Technologies by chipmaker AMD will allow it to offer customers a broader selection of “non-Intel” cutting edge technologies and challenge Intel’s market share, ipIQ’s Investment Perspective concluded.

ipIQ completed an analysis of the combined AMD and ATI by leveraging its proprietary patent data warehouse, patent indicators, and analytics to examine the acquisition. This analysis provides insight into the intellectual property assets of leading semiconductor companies, the characteristics of the IP drivers behind this transaction, and the potential future moves in the industry.

The Investment Perspective, Intel in the Sights: AMD’s Acquisition of ATI Technologies, can be downloaded from the ipIQ website, http://www.ipiq.com.

Key Findings

By analyzing the patent portfolios of key companies in the Semiconductor industry ipIQ concluded:

ATI’s patents are on the leading edge of advances in technology as measured ipIQ’s Science Linkage™ indicator. It measures the extent to which a company’s technology builds upon cutting edge scientific research. The ATI Science Linkage score is a very strong 2.78, almost three times AMD’s score of 0.97, and more than twice Intel’s 1.32.

ATI has a greater degree of influence on the semiconductor industry as a whole vs. NIVIDA, ATI’s closest competitor, and is therefore a stronger acquisition for AMD.

The combined AMD and ATI are in a better position to license a wider portfolio that includes enhanced graphics capabilities.

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Jude Reter
ipIQ
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