AMD buys handheld processor design house

Advanced Micro Device announced it has agreed to acquire privately held

Alchemy Semiconductor, which designs and markets low-power microprocessors. The

move is designed to help AMD enter the market for processors that power handheld

electronics devices. Intel is planning to make a move soon into the market for

handheld devices with a so-called "Xscale" processor, which is based

on an ARM system architecture.

The Alchemy processors, on the other hand, are based on the RISC-based MIPS

architecture In addition to technology, AMD gains two of the industry's foremost

chip engineers. Alchemy was founded by Rich Witek and Greg Hoeppner, who helped

develop the Alpha and StrongARM processors while at Digital Equipment.

Both Witek and Hoeppner will join AMD's newly established Personal

Connectivity Solutions business. AMD also announced it has signed up to be the

main sponsor of the Ferrari Formula One racing team. "AMD and the Ferrari

team both share a determination to compete, strength to innovate, and a passion

to win," said AMD executive Giuliano Meroni.

As part of the deal, the AMD logo will appear on Ferrari Formula One cars in

race events around the world, as well as on the helmet and race suit of renowned

Ferrari driver Rubens Barrichello. "Linking the AMD brand to a winning and

prestigious company like Ferrari and Formula One racing reflects our core values

of excellence and competitiveness," Meroni said.

The Ferrari Formula One Team will also use AMD processor-based PC systems to

provide real time performance diagnostics to assist Ferrari drivers during

Formula One races. "People expect the best performance and reliability from

a Ferrari race car. We expect the same from our support equipment including our

computers," said Jean Todt, Ferrari Team Principal. "We are pleased to

have a worldwide technology leader like AMD among our official sponsors."