Atmel licensed the ARM Cortex-M3 core.
Will Atmel be able to sustain all the different cores?
It would be a shame to see the AVR32 UC3 perish.
IMVHO market still has the niche for a few types of small 32bit micro controllers. :)
If Atmel did not see a place for the AVR32, I don't think they would have spent the years developing the AVR32. My guess it that Atmel will sell AVR32's but also be in the market for the ARM product line two.. best of both worlds for Atmel.
Atmel already had arms way before releasing AVR32's. Usually the ARM feature-equivalent of the avr32 is much more expensive though.
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