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Summary:

AMD sells digital TV chip division to Broadcom for $193 million in cash. It is part of companies desire to be an asset-lite company.

AMD finally announced that it has unloaded its digital television chip division to Broadcom for the low, low price of $192.8 million cash, which it should have done ages ago. The news should cheer investors who have been repeatedly disappointed by AMD’s earnings, and should also elate Broadcom which walked away with a steal on which it can base its DTV efforts.

Meanwhile, just a few miles up the road from AMD’s Austin campus, Freescale may be entertaining buyers as well. An article in the Austin American Statesman gives substance to some rumors I’d heard about the wireless chip division being for sale and my general theory that Freescale needs to slim down. We knew the wireless division was in trouble, especially as Motorola, its largest customer (and former parent company) began buying its chips from Qualcomm and TI. Unfortunately for Freescale, most of its wireless technology wouldn’t be that interesting to a big wireless chip firm because it would already have much of Freescale’s know how. That makes a foreign buyer seeking bargain basement prices much more likely.

Here in Austin the news of cheap chip units for sale might be disappointing, but there’s still plenty to cheer about. The city may have lost most of the fabrication plants that gave it the Silicon Hills nickname, (and may lose more depending on AMD’s asset-light strategy), but it still is home to several important design efforts. IBM’s cell processor was designed in Austin, as were aspects of Intel’s Atom chip. ARM Holdings, Via Technologies and AMD all have design engineers here working on big projects.

Perhaps most enticingly, there are some interesting startups. Luxtera, a CMOS-based optical chip maker has the potential to achieve optical speeds between chips and on individual chips cheaper than current generation technology, and Black Sand Technology, which is designing a silicon-based power amplifier, are both in Austin. If its chips work, Black Sands could benefit greatly from California’s recent ruling that gallium arsenide, a popular semiconductor compound used in most power amplifiers is a carcinogen.

Austin’s Silicon Hills may be eroding, but for high-end jobs, the hills are still alive.

image of AMD’s new Austin HQ under construction in Aug. 2007 from AMD

  1. Stacey:

    I visited Luxtera several years back at their headquarters in Carlsbad, California. What fab they were doing at the time seemed to be located there. A quick look at their corporate website and their job openings doesn’t reveal an Austin facility, just the Carlsbad one. Care to elaborate? Thanks!

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  2. Stacey:

    Or were you referring to Luxtera using Freescale’s SOI-CMOS foundry fabrication process for their chips?

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  3. Stacey Higginbotham Monday, August 25, 2008

    Dean, I was just so excited about Luxtera I confused them with Luminary Micro here in Austin. I’m red in the face AND disappointed Austin can’t claim Luxtera, which is doing some cool stuff.

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  4. The hills are definitely alive & well for high-end tech jobs in Austin right now. Might you know of any senior systems engineers that are looking for work :) We are more than happy to hire on new talent right now!

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