MANHASSET, N.Y. Microprocessor supplier AMD Inc. has entered a broad strategic relationship with fabless semiconductor Raza Microelectronics Inc. and made a strategic investment in the company.
As a key part of this cooperation, RMI (Cupertino, Calif.) will acquire the MIPS-based AMD Alchemy processor product line and operations from AMD (Sunnyvale, Calif.), with AMD becoming an investor in RMI. The acquisition is expected to lead to cooperation between both companies in other product areas, including the recently announced Torrenza platform.
"We are extremely pleased to enter into a strategic relationship with AMD and to bring them on as an investor. RMI is continuing to expand its product offerings and customer base, and the acquisition of the Alchemy product family bolsters our portfolio significantly," said Atiq Raza, chairman and chief executive of RMI, in a statement.
Designed to address customer needs for high-performance, low-power embedded solutions, AMD's Alchemy processors cover a wide range of applications targeted at multimedia, access and computing devices as well as the communications and consumer markets.
RMI recently raised $20 million
in venture capital funding and is trying to expand marketing and sales in North America, Europe, and Asia.
The company's processors include the XLR and Orion, highly-integrated designs incorporating hundreds of millions of transistors and built on leading-edge process technologies. Both processors are manufactured by Taiwan Semiconductor Manufacturing Co. Ltd.
Analysts believe that AMD sold the Alchemy line to focus on its core x86-based processor business. AMD acquired that product line from a startup. In 2002 AMD acquired Alchemy Semiconductor Inc., a supplier of embedded processor chips based on 32-bit RISC cores from MIPS Technologies Inc.