Welcome!

Containers Expo Blog Authors: Elizabeth White, Liz McMillan, Yeshim Deniz, Pat Romanski, Ravi Rajamiyer

Related Topics: Containers Expo Blog

Containers Expo Blog: Article

Why the Biggest Antitrust Case Ever May Never Get to Court

Seems only way AMD will get to keep on making x86 chips is to consign antitrust suit

Wanna bet that Intel has found a way to get AMD to drop its cherished antitrust suit against the semiconductor giant - and that AMD handed Intel the means to blow it away?

It all revolves around AMD's so-called asset light strategy and the fact that circumstances have forced it to spin out its manufacturing plants into a "subsidiary," otherwise know as the Foundry Company, that will be 62%-owned by the oil-rich Persian Gulf sheikdom of Abu Dhabi.

AMD has taken this course to survive but the spin-off raises issues with its age-old x86 license from Intel, which, as it happens, comes up for renewal next year.

The x86 IP covered by the license is Intel's crown jewels so Intel is understandably touchy about it.

The week before last, Intel sent AMD a letter asking for a sit-down to clear up some questions it has about the so-called Foundry Company.

Simply by sending the letter, Intel, under its contract with AMD, initiated formal dispute resolution.

Bottom line, that means that the only way AMD gets to keep its right to go on making x86 chips is to consign its precious antitrust suit, which has already involved trading more pieces of paper than any other dispute in the history of man, to the ash can - along with its dream of a fat juicy award that squares its books.

When the companies sit down, Intel is gonna wanna know from AMD how it is that AMD can unilaterally consign its x86 rights to a third party and what happens to Intel's IP if and when AMD's position in the Foundry Company - already reduced from the originally envisioned 44.4% and the deal hasn't even closed yet - drops yet again.

See, there's a 20% cap on non-AMD produced wafers in the license, suggesting that AMD would have to own at least 51% of the Foundry.

AMD's simply calling the Foundry Company a subsidiary isn't going to cut it for Intel, which wants AMD to make the redacted parts of the cross-license deal public.

Intel is unlikely to get much of an argument about AMD's lawsuit from Abu Dhabi. The emir could give a tinker's dam about it. There's nothing in it for him; he's just concerned about the validity of the x86 license, which he hopes to leverage into a broader semiconductor-making enterprise. Which is probably why, according to its Foundry deal with AMD, Abu Dhabi can veto any settlement discussions with Intel.

Nobody can do much about the AMD-initiated antitrust case that the European Commission has brought against Intel; that has a life of its own now, but it might be a nice touch if AMD dropped its complaint.

When asked about all this, Intel spokesman Chuck Mulloy said, "Intel does not comment on speculation." Not to worry, there are just some times it's best to read the writing on the wall.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Kan 01/30/09 12:39:00 PM EST

I cannot agree with the logic that the Intel's x86 IP will force AMD into submission. Whereas Intel owns the X86 IP, the x64 IP belongs to AMD. The industry is right at the crosspoint turning 64 bit. Even if Intel want to dump AMD by giving up the right to use x64 instructions, the rest of the industry will not agree and it is silly for Intel to alienate the whole industry. It is a lose-lose situation. Should this happen, it will only force the Government to intervene, probably in favor of AMD, and Intel may end up as the lone loser.

IoT & Smart Cities Stories
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.