It seems that Advanced Micro Devices, the second largest x86 microprocessors manufacturer, intends to take over ATI Technologies, one of the leaders in graphics chipsets and processors producing, in order to provide all-in-one platform solutions as its challenger Intel Corp does, according to RBC Market Capitals analyst Apjit Walia, quoted by X-bit Labs.

"The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years. We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics," Walia said.

More than that, the manufacturer will take over a company which prefers to outsource its production, the items being made in other facilities and then shipped under ATI's brand name. ATI Technologies has been loosing market share because of Nvidia, the company's biggest threat, especially on the desktop segment. More precisely, ATI manufactures processors for consumer electronics or handhelds, graphics processing units (GPUs), develops technologies for game consoles and core-logic sets with built-in graphics cores for PCs.

Consequently, if AMD is determined to produce also ATI's chips, the company will definitely have to decrease the quantities of items manufactured in its facilities. Furthermore, a series of investments into ATI's products quality and performance would trigger a decrease in the company's own technology development.

It seems that there have been a lot of rumors on the market about several microprocessors companies that want to take over graphics specialized manufacturers, so AMD would be the first one to confirm these chitchats.

"This tie-up might make sense for AMD at this juncture but we don't think Intel should pursue tying-up with graphics companies and should instead look at the communications-space," Walia added.

Also, as Intel will soon launch its already famous Intel Core 2 Duo developed for laptops - Memron - and desktops - Conroe -, but also Intel Xeon 5100 series chips - Woodcrest, AMD will have to handle a stronger opponent.