## Chipmaker Advanced Micro Devices Inc is at the initial stage of reviewing whether to split itself in two or spin off a business, seeking to reverse its fortunes and take on rival Intel Corp, according to three people familiar with the matter//
## The deliberations are preliminary and no decision has been made, the people said// The review highlights Chief Executive Lisa Su-s determination to consider every possible option to turn the company around//
## AMD, based in Sunnyvale, California, has asked a consulting firm to help it review its options and draw up scenarios on how a breakup or spinoff would work, the people said this week, asking not to be identified because the deliberations are confidential//
## One option under consideration is separating AMD-s graphics and licensing business from its server business, which sells processors that power data centers, one of the people said//
## AMD had explored such a move in the past and decided against it, the people said// Su, however, who took over as CEO last October, judged that there is merit for the company to at least consider such a possibility again, the people added// There is no certainty that a split or spin off will occur, the people cautioned//
## An AMD spokeswoman said no such project was in the works at this time and reiterated the company-s commitment to the longterm strategy it laid out in May at its analyst meeting//
## AMD, which has a market capitalization of around $2 billion, has competed with much larger Intel since the 1980s, and at times has made inroads with its PC and server chips// AMD has an extensive crosslicensing agreement with Intel, an issue AMD would have to study carefully in the case of a breakup//
## In the last few years, AMD has been caught somewhat flatfooted by new competitors designing lowcost and powerefficient chips// AMD shares have fallen 40 percent over the last 12 months//
## The company, which said in October it would cut 7 percent of its workforce, is now shifting its focus to gaming consoles and lowpower servers to combat falling laptop sales
## While large rivals such as Intel have deeper pockets to fund research on new products, AMD faces declining cash flows and has a more modest balance sheet//
## AMD-s net loss widened to $180 million, or 23 cents per share, in the quarter that ended March 28, from $20 million, or 3 cents per share, a year earlier// It also missed on revenue expectations// It is forecasting a return to profitability in the second half of the year//
