AMD Exits High Density Server Business, Mothballing SeaMicro
AMD made the news public on Thursday when delivering its fiscal first quarter financial results. The Sunnyvale chip designer posted a net loss of $180 million on revenue of $1.03 billion, the latter of which is down 17 percent sequentially and 26 percent compared to the same quarter a year ago when it posted a profit of $49 million.
Obviously those "strong new products" AMD plans to ship will not include dense server systems. The decision to pull out of the market falls under the simplify portion of AMD's long-term strategy. It may also represent a desire by Dr. Su to realign AMD with her vision of what the company should be focusing on, as the SeaMicro acquisition was made under former CEO Rory Read.
AMD still owns the intellectual property for SeaMicro's fabric technology. Furthermore, AMD will ship its first ARM processors later this year, which might be well suited for dense servers like the ones SeaMicro used to build. What that means is that AMD is not interested in building and selling dense server systems, but will still cater to the overall market by focusing on the development of server processors and related technologies.