Advanced Micro Devices announced an agreement with National Semiconductor to acquire National's 'x86' architecture Geode system-on-chip processor family (used in a large number of consumer devices, especially set-top boxes and tablet PCs). Specifically, AMD will take over the assets of National's Information Appliance (IA) business unit, which had been up for sale since early this year. The Geode will become part of AMD's Personal Connectivity Solutions group's (PCS) product portfolio, which also includes the Alchemy MIPS-technology RISC system-on-chip processors. AMD plans to target the Geode product line primarily at products such as thin clients, smart displays, and set-top boxes, where it is already quite popular.

The Geode acquisition strengthens AMD's position relative to that of its main competitor, Intel, in the embedded and handheld devices markets. In recent years, Intel has pulled back from an embedded-x86 processor strategy, choosing instead to position its mobile Pentium family for embedded system use and target its ARM-architecture RISC XScale processors at handheld applications. For its part, AMD now has the x86-architecture Geode processors for embedded systems and both the Geode processors and MIPS-architecture RISC Alchemy processors for handheld and mobile applications.

“With this acquisition, AMD would be the only company with the assets, dedicated resources and strategic vision to deliver a common, industry standard architecture from embedded applications to mobile, desktop and servers,” commented AMD president and chief executive officer, Hector Ruiz.

In addition to the technology acquisition, AMD said it expects approximately 132 personnel from National's IA business unit will join AMD's PCS group. Financial terms of the sale, which is expected to be completed by the end of August, were not disclosed.

“This deal makes sense for both companies,” said Brian L. Halla, National's chairman, president and CEO. “This allows National to focus on growing our core analog business and improving our returns. At the same time, AMD will be able to leverage the Geode technology through their existing manufacturing and marketing infrastructure. We intend to work with AMD to ensure a rapid and successful transition for our customers.”

The Geode processors have been extremely popular in Linux-based embedded systems.

 
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