Chipmakers AMD (opens in new tab) and Mediatek (opens in new tab) are reportedly in talks to establish a new joint venture according to a recent report from DigiTimes (opens in new tab).
Based on the news outlet's report, the joint venture would be focused on 5G, Wi-Fi and other System on a Chip (SoC (opens in new tab)) level data transmission technologies though wired data transmission controllers could also be developed by the two companies as well.
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If this joint venture is real and does come to be, Mediatek's IP could end up being integrated into AMD SoCs for laptops (opens in new tab) and other mobile devices.
AMD and Mediatek joint venture
According to sources close to DigiTimes, any of the SoC designs that result from AMD and Mediatek's joint venture would likely hit the market on or around 2024.
While AMD has said that it doesn't comment on market speculation and MediaTek has flat out denied DigitTimes' report, the two companies have collaborated in the past. In order to add Wi-Fi 6 (opens in new tab) to its AMD RZ608 chip which debuted alongside the release of the AYANEO (opens in new tab) handheld gaming console, AMD used Mediatek's technology. Although the module carries AMD branding, it's actually a rebranded version of Mediatek's MT7921K wireless communications module.
DigiTimes' report also brings up the point that AMD wants to improve its laptops by integrating data transmission technologies. As Taiwan-based Mediatek is one of the most prolific SoC developers with a rich 5G (opens in new tab) portfolio, a joint venture could be a natural fit between the two companies. The move would also allow AMD to avoid using solutions developed by its biggest rival in the CPU space, Intel (opens in new tab).
AMD's acquisition of the semiconductor manufacturing company Xilinx (opens in new tab) could come into play as well as the joint venture could leverage its technology to create new wired and wireless high-speed data transmission controllers.
We'll have to wait and see as to whether or not a joint venture between AMD and Mediatek comes to be but there are plenty of reasons why the two companies collaborating further makes a great deal of sense.
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