Leaving behind the bad experiences of last year Advanced Micro Devices (AMD) is looking to gain new ground in 2008 with an aggressive push in the consumer electronics space.
HYDERABAD: Leaving behind the bad experiences of last year, which was characterised by a price war with arch rival Intel and delays in chip launches, chip-maker Advanced Micro Devices (AMD) is looking to gain new ground in 2008 with an aggressive push in the consumer electronics space.
In the immediate instance, the world’s second largest computer chip-maker is targeting the smart phone and digital TV market which is expected to be over $6 billion over the next four years.
The company also has an option to make a push into the set-top box and media player market, Adrain Hartog, senior vice-president, global consumer electronics group and president AMD Canada, said.
While AMD’s revenues from consumer electronics are pegged at close to $500 million per year now, the company aims to take it up to $2 billion per year soon.
“Our goal is to grow the consumer electronics business at a rate faster than the rest of the company. It is seen as a growth opportunity and will help AMD win references with companies in its other businesses too,” he explained.
Major growth will come from handsets, consoles and digital TVs for the consumer electronics business of AMD, Hartog said. All these segments are at an inflexion point with multimedia capabilities being exploited while being connected to the internet, he added.
AMD made a major foray into consumer electronics with the $5.4 billion acquisition of graphics chip designer ATI in October 2006.
Though Motorola continues to be its largest customer in this space, AMD has broadened its handset base with the addition of more manufacturers since the acquisition.
It is now also targeting the fast growing digital TV market and intends to emerge the top supplier in this segment catering to customers like Hitachi, JVC, Mitsubishi, Philips, Samsung, Sharp, Soney etc.
AMD is also the sole supplier of graphics processors for both Microsoft’s Xbox 360 and Nintendo’s Wii consoles.
Much of the aggressive growth is being sought to be achieved by connecting the different platforms, explained Hartog who was here to kick off AMD’s 50/15 CSR programme aimed at increasing digital inclusion initiatives.
On India’s importance in AMD’s strategy, Hartog said the company would leverage its R&D strength built here over the years. In fact the India team is beginning to take over ownership of various products.
And then of course emerging markets like India have a huge potential for handsets and digital TVs, he added. AMD employs 250 engineers in Bangalore apart form 450 in Hyderabad. It recently inaugurated a new R&D facility here.
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