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In a bid to boost its revenue streams, Advanced Micro Devices could start licensing its graphics processing technologies to third parties, just like ARM Holdings, Imagination Technologies, Nvidia Corp. and Vivante. But will that business make sense to AMD?
AMD and Nvidia Corp. are the last two remaining developers of discrete graphics processing units (GPUs) for personal computers. Since research and development of graphics processing technologies is getting more and more expensive, Nvidia Corp. last year decided to start licensing its GPU-related intellectual property to third parties, which naturally raised questions about similar plans at AMD. Although the company has not announced any intentions like that, it is actively exploring such opportunities.
“We have considered [technology licensing deals] and we will explore possibilities in that area as we move forward,” said Devinder Kumar, chief financial officer of AMD, at Raymond James’ systems, semiconductors, software and supply chain conference.
At present AMD has several ways to monetize its graphics processing IP portfolio: by selling graphics processing units, by selling accelerated processing units and system-on-chips with integrated graphics cores, by selling semi-custom SoCs for various devices (such as video game consoles) and by licensing its technologies. The company uses all the opportunities it has, but its licensing business is limited to Nintendo Wii U and some other systems. Therefore, it is logical that the company would like to expand its licensing business.
While AMD has a very broad graphics IP portfolio, it should be noted that every technology licensing deal means a lost semi-custom SoC development deal, which means lost revenue and potentially lower profits. Still, AMD does not have to develop anything itself if it licenses technologies to other companies, moreover, the company cannot develop all the chips it is proposed to.
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KitGuru Says: While AMD could license certain technologies to third-party developers of mobile SoCs that it would not like to design itself (e.g., the company does not seem to be interested in application processors for smartphones and tablets), graphics IP licensing will unlikely become a big business for AMD since the competition on this market is very strong and AMD will have to compete against four rivals all of which have rather decent technologies.
Samsung?
Soon Samsung will buy AMD
And how are they going to explain this to Intel? Except if they stop making x86 cores or keep them for the low end market. It will be easier, simpler and cheaper for them to license AMD’s IP.
nVidia offered to license it’s Graphics technology to any takers when AMD announced their entry into the ARM ecosystem. There where no takers. So far only Intel cross licenses technology with nVidia and that was necessary to get Sandy Bridge and it’s refreshes out the door.
I find it highly unlikely that AMD will license the crown jewels especially in the ARM ecosystem. AMD would simply be competing with itself. Radeon graphics cores do more than process graphics. AMD intends to use Radeon compute cores for dense servers. They would hardly allow that advantage to ANY other ARM builder.
AMD really screwed the pooch when it sold off graphics IP to Qualcomm for a mere pittance of $65million. Qualcomm immediately named that IP Adreno, and anagram of Radeon. I find it unlikely that AMD would make that mistake again.
Evidently MediaTek will be the licensee. Didn’t see that one coming! #2 mobile cpu designer wants to be #1.
And the no. 1 SOC designer was already using AMD technology! (100% AMD tech in Adreno 2xx series, atleast 70% AMD tech in Adreno 3xx series)
The problem with Adreno is that it is dated and can not evolve without violating AMD patents. But for dated it is still better than most. Except of course NEW Radeon.
Rightly put. It is still good but we are seeing it’s dominance being severely challenged. While it was the undisputed champion in smartphone space (not tablets) during the adreno 320/330’s time, we don’t see that kind of superiority in 420/430. It often loses to Powervr 6×50 series & even Mali 760mp8 (exynos 7420). Tegra X1 is head & shoulders above it and so will be AMD’s solution for mediatek