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AMD gives Radeon graphics its own division in business reorganization

By Scorpus
Sep 10, 2015
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  1. AMD has decided that, for the first time since the company's acquisition of ATI in 2006, Radeon graphics should be given its own business group headed by a single executive. This decision has brought about an internal restructuring that makes graphics a core division of AMD, reflecting its importance to their business.

    This new division is called the Radeon Technologies Group, and it's being led by graphics expert Raja Koduri in the role of senior vice president and chief architect. Koduri will oversee hardware development - such as discrete graphics cards, APUs, and semi-custom products - as well as software development, marketing, developer relations and more.

    The creation of a dedicated Radeon division is big news for AMD, who previously split graphics across a wide range of product groups. The idea with this previous business model was to deeply integrate graphics everywhere and collaborate between various teams, hence why the GPU became such a big part of the company's APU and compute products.

    While the model was good in theory, AMD's position in the graphics market has slipped in the past few years, with their market share in the discrete graphics card business sitting below 20 percent according to recent reports. The restructuring allows graphics to become a core focus with a single message going forward.

    As part of the restructuring, the central Radeon teams will move to AMD's headquarters in Sunnyvale, California. AMD CEO Lisa Su hopes that this move will make the graphics division more "agile and vertically integrated", improving their product offerings in the future.

    Speaking of the future, it shouldn't be too long before we see the benefits of this change-up. AMD has just finished launching their new range of Fury products, after which the company will turn their attention to the 2016 line-up, potentially featuring GPUs built using newer FinFET technology. With the Radeon team united, next year's product launches could be much stronger than before.

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  2. captaincranky

    captaincranky TechSpot Addict Posts: 11,700   +1,886

    This is extraordinarily moving........(y)*nerd*
     
  3. deemon

    deemon TS Addict Posts: 206   +47

    Yes, yes, very nice... now where are nano real world testing results and reviews? ;-)
     
  4. VitalyT

    VitalyT Russ-Puss Posts: 3,154   +1,429

    Maybe they are planning to sell it to another sucker out there.
     
  5. Axle Grease

    Axle Grease TS Booster Posts: 69   +20

    "agile and vertically integrated"

    Yes... I've witnessed this kind of language used in powerpoint presentations, flyers,and by certain management people right before the fog sets in. My brain does not absorb any of it.
     
  6. VitalyT

    VitalyT Russ-Puss Posts: 3,154   +1,429

    Yeah, and "agile and vertically integrated", in contrast to "stiff and vertically challenged"? Kind of rings all the wrong bells. :)
     
    Phr3d likes this.
  7. captaincranky

    captaincranky TechSpot Addict Posts: 11,700   +1,886

    To the upside, with a woman CEO, and an Indian running the graphics division, they won't have to file one of those tragically apologetic "diversity reports". (At least for the next couple of months anyway).
     
    dividebyzero and Skidmarksdeluxe like this.
  8. gamerk2

    gamerk2 TS Enthusiast Posts: 40   +18

    This is going down EXACTLY how I said it would. AMD was in real danger of running out of cash before the Zen release, especially if it slips into early 2017. And Radeon is really the only part of AMD that can be sold for immediate cash if needed.

    What's happening here is simple: An investment group views AMD as undervalued, purchased 20% of the company, and is basically demanding that the less profitable parts of the company (Radeon) get jettisoned so AMD can focus on it's core business (CPUs), become more competitive, and most important, raise their stock price so the investment firms can make a nice 2:1 (or more) profit. This is an investor driven move, and pretty much indicate investors are tired of business as usual within AMD. This is phase 1 of AMD's eventual breakup into several separate companies.
     
  9. Puiu

    Puiu TS Evangelist Posts: 1,904   +529

    you don't have to worry about AMD not having money. they aren't breaking up in separate companies. that's in the realm of fantasy.
     
    Last edited: Sep 10, 2015
    mosu likes this.
  10. davislane1

    davislane1 TS Evangelist Posts: 3,554   +2,361

    Translated from Business to English: "Radeon will have to jump through fewer hoops and have an in-house supply chain."

    It's almost as if they're realizing having to go through several layers of corporate and having a third-party supply dependency isn't the best idea for a GPU manufacturer.
     
    Last edited: Sep 10, 2015
    deemon and VitalyT like this.
  11. Scorpus

    Scorpus TechSpot Staff Topic Starter Posts: 1,828   +188

    On TechSpot very, very shortly
     
  12. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,505   +2,053

    Yeah. Nobody cares if they are the best suited to the job just as long as they're politically correct.
     
    Forebode likes this.
  13. dividebyzero

    dividebyzero trainee n00b Posts: 4,891   +1,258

    Mmmmm...it's almost as if AMD suddenly realized that operating ATI Radeon as a separate entity unencumbered by AMD's own unfocused executive might lead to a better time to market strategy.
    It's a pity they couldn't have come to that decision in 2006 when they acquired ATI. Nine years to basically get back to where they started from (excluding market cap which is now just under a tenth of the combined 2006 valuation)
     

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