Processor manufacturer AMD are reportedly finalising a deal to purchase graphics chip manufacturer ATi.

AMD are at the moment second to Intel in the consumer PC market for making processors. AMD and Intel’s 32-bit chips can run the same software, but more recently AMD have been branching out to build 64-bit chips that can run 64-bit and 32-bit software (such as the Athlon 64 series), while for the consumer market, Intel have been focusing on staying with 32-bit chips, but making them dual core (put simply, two main processing ‘cores’ on one chip, so it runs a lot faster). Some of AMD’s top processors are also dual core and 64-bit.

Intel haven’t just been limited to main processors, however. For a while they’ve actually been the number one graphics chip manufacturer (selling cheaper integrated graphics chips for low-end computers). For more powerful computers, such as gaming PCs, leaders in the graphics chip market are Nvidia and ATi.

Now that AMD look set to acquire ATi, they will be in much more of a position to rival Intel, with a much more comprehensive package of products. This move will probably also put pressure on Nvidia.

An interesting story, however, is Apple. Apple are in the process of releasing new machines based on Intel processors, moving away from IBM’s PowerPC chips. However, their high-end Intel laptop, the MacBook Pro, uses an Intel Core Duo processor but has ATi graphics. Will this trend continue in Apple’s future Intel products? What will Apple’s graphics chip choice be for its ‘Mac Pro’ (name currently unconfirmed) high-end desktop be?