Advanced Micro Devices’ purchase of Canadian graphics chip developer ATI Technologies won’t impact ATI’s business dealings with its largest foundry partner, Taiwan Semiconductor Manufacturing (TSMC) said in a statement late Monday.ATI develops the blueprints of a chip, and then has other companies such as TSMC manufacture them. The graphics chip maker is one of TSMC’s biggest clients, and graphics chips tend to command higher prices than other types of chips for contract chip makers.On Monday, TSMC’s stock dropped to 52.90 new Taiwan dollars (US$1.61) on news reports predicting the merger, down NT$2 during trade on the Taiwan Stock Exchange. Investors believed the AMD/ATI tie-up would mean ATI planned to pull its chip orders from TSMC and place them with AMD partners, IBM or Chartered Semiconductor Manufacturing, according to the evening edition of the United Daily News, a Taiwanese newspaper. SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe “Based on our discussions with ATI, our business with ATI will continue as usual after its merger with AMD,” TSMC said in the statement. Analysts sided with TSMC.“We disagree with claims that TSMC would lose all ATI revenue,” said Dan Heyler, research analyst at Merrill Lynch in Hong Kong, in a report. He said volatility in the chipset and graphics markets makes production more suitable for a contract manufacturing partner such as TSMC rather than a chip maker such as AMD. Contract manufacturers can offset market lulls in one product by making other kinds of chips, while companies such as AMD simply suffer losses when the market turns down. A transition of ATI orders away from TSMC would also likely be slow since AMD’s own factories are already running at full steam on its own products, he said.TSMC shares were up 1.5 percent early at NT$53.7 in Taipei. The company’s U.S.-listed stocks rose 5 percent on Monday.AMD confirmed news reports on Monday in the United States, long after Asian stock markets had closed for the day. The microprocessor maker agreed to buy ATI for about $5.4 billion in cash and stock.-Dan Nystedt, IDG News Service (Taipei Bureau)Related Link: AMD Says It Will Purchase ATI for 5.4BCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content opinion The changing face of cybersecurity threats in 2023 Cybersecurity has always been a cat-and-mouse game, but the mice keep getting bigger and are becoming increasingly harder to hunt. By Dipti Parmar Sep 29, 2023 8 mins Cybercrime Security brandpost Should finance organizations bank on Generative AI? Finance and banking organizations are looking at generative AI to support employees and customers across a range of text and numerically-based use cases. By Jay Limbasiya, Global AI, Analytics, & Data Management Business Development, Unstructured Data Solutions, Dell Technologies Sep 29, 2023 5 mins Artificial Intelligence brandpost Embrace the Generative AI revolution: a guide to integrating Generative AI into your operations The CTO of SAP shares his experiences and learnings to provide actionable insights on navigating the GenAI revolution. By Juergen Mueller Sep 29, 2023 4 mins Artificial Intelligence feature 10 most in-demand generative AI skills Gen AI is booming, and companies are scrambling to fill skills gaps by hiring freelancers to make the most of the technology. These are the 10 most sought-after generative AI skills on the market right now. By Sarah K. White Sep 29, 2023 8 mins Hiring Generative AI IT Skills Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe