Whether or not this will happen hasn't been confirmed, but according to RBC Capital Markets, it would be an improvement to the overall graphics industry. This just happens after Intel are putting in lots of money on the launch of their new CPU.

I guess nVidia will be pretty unhappy if this were to go through aswell.

Frobes reports:

"The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years," wrote analyst Apjit Walia in a note to investors Wednesday. "We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics."

What do you think?