AMD in tiff with Intel
Officials say "diversionary tactic" won't affect plans for Luther Forest project
By LARRY RULISON, Business writer
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First published: Tuesday, March 17, 2009
MALTA — Intel Corp. wants to cancel its long-standing technology-sharing agreement with Advanced Micro Devices Inc. after AMD spun off manufacturing two weeks ago The move is important to the Capital Region because AMD is the first — and currently only — customer of GlobalFoundries Inc., the California company planning a $4.2 billion computer-chip factory in Malta. Intel says it will cancel the agreement within 60 days if the two sides cannot come to a resolution. Intel, the world's No. 1 maker of chips for personal computers and servers, says AMD violated the agreement when it created GlobalFoundries through a joint venture funded by the Emirate of Abu Dhabi. Intel says the technology cannot be transferred to a third party. AMD doesn't see it that way, and argues that GlobalFoundries can use the technology because it is a subsidiary of AMD covered under the agreement. Officials from AMD and GlobalFoundries moved quickly to dampen fears that Intel's move would endanger plans for what's known as Fab 2 at the Luther Forest Technology Campus in Malta. New York has committed $1.2 billion to the project, considered one of the most important in state history. "This doesn't change anything for us," said GlobalFoundries spokesman Travis Bullard. "We see this as a diversionary tactic from Intel to distract from the global antitrust scrutiny they face. We remain on track to manufacture products for AMD and other future customers." Intel has had concerns about the long-standing agreement ever since AMD announced plans for the joint venture back in October. Monday morning, AMD said in a filing with the Securities and Exchange Commission that Intel notified it that it was moving to cancel the agreement if the "alleged breach" has not been corrected. Intel said in a subsequent news release that the dispute will go to mediation. "We are willing to find a resolution but at the same time we have an obligation to our stockholders to protect the billions of dollars we've invested in intellectual property," said Intel General Counsel Bruce Sewell. AMD General Counsel Harry Wolin said Monday that Intel is using the agreement — which runs through 2010 — as a way to fight back at AMD for its dispute with Intel over anti-trust violations. "It's sort of tit-for-tat here," Wolin said. "We think this is a very suspect legal claim." Intel's move comes just a few weeks before GlobalFoundries is expected to start clearing a 222-acre site at Luther Forest. An official groundbreaking could take place this summer. The factory is expected to reach full-scale production by 2012 with 1,465 employees. The site would have room for two additional factories as well. Analysts who follow AMD said that the charges by Intel are part of the larger competitive and antitrust battles that the two chip makers are waging. "Obviously Intel is going to make things as difficult as possible for its rival," said Andy Ng of Morningstar Inc. in Chicago. "It's not like this is completely surprising." Nathan Brookwood, research fellow for Insight64 in Saratoga, Calif., said the battle over the technology agreement is really part of the antitrust battle, and the real important fight will take place in Delaware, where AMD has sued Intel in federal court over antitrust issues. That trial is scheduled to start in February of 2010. "This is definitely a sideshow," Brookwood said. Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com. Previously: AMD announced in October plans to spin off manufacturing to a joint venture funded by the Emirate of Abu Dhabi. AMD said the deal was structured in such a way to adhere to a technology-sharing agreement with rival Intel Corp. Intel said it had concerns. Now: Intel has notified AMD of its intent to scrap the agreement within 60 days unless the two sides come up with a solution. What's ahead: The dispute could go to mediation, and if that fails, it could end up in court.
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Fuck you intel, AMD FTW
REPOMAN24722 1 year ago 23
fuck intel expensive cpus, and more poor.
narutothehackerr 2 years ago 19