AMD and ATI UniteConstantly evaluating the market, Advanced Micro Devices completed its $5.4 billion acquisition of ATI Technologies Tuesday, paving the way for its expansion into chipsets and graphics technology.

The company announced a project code-named Fusion that will aim to deliver a PC processor with an integrated graphics processor core by 2008 or 2009, as outlined earlier this year by AMD Chief Technology Officer Phil Hester. Before that becomes a reality, AMD will use ATIs expertise in chipset design to offer its customers the combination of a PC processor and a chipset, which has been Intels strategy for several years.

One of the reasons behind the deal was AMDs desire to offer a more complete product to its PC customers. The chip maker is rubbing elbows with the big PC companies these days, nurturing an extensive portfolio at Hewlett-Packard and a growing presence inside a major PC manufacturer who didn’t use AMD chips for sometime.

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Source: CNET News.com