During the disappointing quarterly results call (joining in all other tech companies which had a miserable quarter, including Intel etc), AMD's CEO Rory Read announced the restructuring of the company, which includes letting go 15% of its workforce.
The third quarter 2012 results call however, did not include all the things that AMD has worked behind the stage. According to our confidential sources, the company is on the shopping spree for new executives and engineers, as well as companies to acquire. We have some indications what companies are being targeted, but this time around we won't disclose whom AMD is buying.
With the new strategy, the company wants to eradicate its internal bureaucracy which our sources compared to specific European countries. The company had some issues in attracting top talent from competing companies such as Intel, Nvidia, Qualcomm and Apple, while at the same time it bled brain power to these, and much more companies – such as Synaptics. The new strategy mentioned on the call also called for consolidation of numerous sites (Sunnyvale, Austin, Markham, Boston, Houston, Denver etc.), but given that previous consolidation efforts only spent more money, we'll see how that will pan out.
The picture above clearly shows in which direction AMD is heading. The company is dead set on integrating both x86-64 and ARM Cortex cores, with the Cortex-M5 part already announced (x86-64 will be used for general computation, Cortex-M5 will be utilized for encryption) – but that's just the start. With the next generation hardware, AMD has plans to integrate baseband in the CPU die and beat Intel to the pulp, which had that plan set for 2014 and 2015 Bay Trail platform with Valleyview SoC designs (2014 Valleyview is a successor to 2013 Silvermont, both use the next-gen 22nm LP process at Intel).
Bear in mind that during the conference call, AMD all but confirmed that the company secured design wins for all three consoles – Nintendo Wii U was already known, but Microsoft Xbox Next and PlayStation Next were obvious unknowns. In any case, we have received an invite for a press conference with three very interesting executives; AMD CEO Rory Read, Senior VP and General Manager for Global Business Units Lisa Su and "a special guest." With AMD keeping the identity of this special guest a secret, we might see a surprising turn of events.
Officially, the press conference will take place next week in San Francisco, with the subject being the new ambidextrous strategy. A quick search on the AMD website leads to a press release dated February 2nd, 2012 – where AMD mentioned way the company will head in the future.