Why AMD is making Radeon graphics a standalone division?

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AMD is making Radeon graphics a standalone division and Raja Koduri will be heading the new division dubbed Radeon Technology Group. Koduri is a graphics expert who has worked with AMD for the past many years and was the brains behind the Radeon R9 Nano.

Mr. Koduri said in a statement:

“AMD is one of the few companies with the engineering talent and IP to make emerging immersive computing opportunities a reality. Now, with the Radeon Technologies Group, we have a dedicated team focused on growing our business as we create a unique environment for the best and brightest minds in graphics to be a part of the team re-defining the industry.”

AMD is making Radeon graphics a standalone division

ATI Technologies was acquired by AMD in 2006 for $5.4 billion and this for the first time that it is being restructured. Reportedly, the Radeon Technology Group will be free to make its own strategy for the standalone group.

AMD also manufactures APU (accelerated processing unit), which combines microprocessor and graphics unit on the same chip and it has an edge over its competitors in this technology. AMD is making Radeon graphics a standalone division, but it is said that APU’s will be manufactured jointly by them.

Possible reasons that AMD is making Radeon graphics a standalone division:

For the past few years, AMD is struggling to compete against rivals like NVIDIA in the graphics processor and Intel in PC microprocessors. The stock valuation of the chipmaker has fallen to five-year low at $1.45 billion, as it struggles to make money. The company hopes that the new structure will help them to make a strong comeback.

Another possible reason that AMD is making Radeon graphics a standalone division is the slowing down of PC market growth and its rival Intel has advantages over AMD in terms of technical staff and manufacturing capacity.

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