Intel Threatens AMD's Chip-Making License - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Infrastructure // PC & Servers

Intel Threatens AMD's Chip-Making License

At the heart of the x86 licensing dispute is whether AMD's chip-manufacturing spin-off, GlobalFoundries, is a separate company or a subsidiary.

In the SEC filing, AMD says that Intel is claiming that AMD violated the licensing agreement "through the creation" of GlobalFoundries. Intel denies that's the case. In addition, AMD accuses Intel of failing to follow the proper procedure for handling disputes and is therefore also in violation of the agreement. Intel also denies that allegation.

AMD wasn't immediately available for an interview, but in a statement the company said, "Intel's action is an attempt to distract the world from the global antitrust scrutiny it faces."

"Should this matter proceed to litigation, we will prove that Intel fabricated this claim to interfere with our commercial relationships and thus has violated the cross-license," the company said.

AMD sued Intel back in 2005, accusing the latter company of anti-competitive behavior that violates antitrust laws. The suit is pending.

Intel first notified AMD of the licensing problems in October and said it's still willing to talk to its smaller rival to settle the dispute. AMD's position on future talks isn't clear. No lawsuits have been filed yet.

In the meantime, GlobalFoundries officially opened for business this month. The company has announced plans to expand manufacturing capacity at its facility in Dresden, Germany, by then end of the year, and to begin construction this year on a second fabrication plant in Saratoga County, N.Y.

The $4.3 billion GlobalFoundries employs 3,000 people worldwide and is based in Silicon Valley, Calif.

Those next-generation x86 processors from Intel and AMD are paving the way for improved virtualization. InformationWeek has published an independent analysis of this topic. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
2 of 2
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
Tech Spending Climbs as Digital Business Initiatives Grow
Jessica Davis, Senior Editor, Enterprise Apps,  4/22/2021
Optimizing the CIO and CFO Relationship
Mary E. Shacklett, Mary E. Shacklett,  4/13/2021
White Papers
Register for InformationWeek Newsletters
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Flash Poll