Company News
Intel and AMD trade blows
INTEL has let AMD know they do not action is an attempt to distract the
believe their cross licence agreement world from the global antitrust scrutiny
transfers to the newly established Abu it faces. With a ruling from the EC and a
Dhabi funded Global Foundries but U.S. trial date looming and other
AMD retaliates that Intel is trying to investigations, AMD feels the clock is
distract from its antitrust suits. ticking on Intel’s practices and yet with
At the start of this week Intel its dominant position it tries to stifle
disclosed that the company has notified competitors. AMD stated that if this
AMD that it believes there is a breach matter goes to litigation, they will prove
of a 2001 cross license agreement. Intel that Intel fabricated this claim to
believes that Global Foundries is not a believed in the strategic importance of interfere with commercial relationships
subsidiary under terms of the licensing IP in exchange for fair value. and violated the license. According to
agreement. Intel also said the structure However AMD cannot unilaterally AMD they remains in full compliance
of the deal between AMD and ATIC extend Intel’s licensing rights to a third with the cross license agreement.
breaches a confidential portion. Intel party without Intel’s consent,” said The AMD/Intel cross-license
has asked AMD to make the relevant Bruce Sewell, senior VP and general agreement is a two-way agreement, the
portion public, but AMD has declined. counsel for Intel. benefits of which go to both
AMD’s breach could result in the loss of AMD quickly claimed Intel is in companies. Intel leverages innovative
licenses and rights under the agreement breach of this agreement by notifying AMD IP critical for its product designs
but subsequent stock price movement AMD of any perceived breaches. Intel under the cross license. This includes
suggested that both Intel and AMD’s believes this is inconsistent with the AMD patents related to 64-bit
shareholders are not convinced. resolution process outlined in the architecture extensions, integrated
“IP is a cornerstone of Intel’s agreement but AMD’s response poured memory controller, multi-core
technology leadership and for more scorn on the Intel assertions. In a architecture, etc.). The cross-license is
than 30 years, the company has statement AMD responded that Intel’s very much a two-way street.
6
www
.eur AMD’s new foundry business
oasiasemiconductor
GLOBALFOUNDRIES, a new technologies to third party customers In addition to Fab 1, the company also
semiconductor manucturing company through its high volume services. plans to begin construction on a new
formed by a joint venture between “As consumers move to smaller state-of-the-art 32nm and smaller
AMD and the Advanced Technology and more energy efficient devices, we features, $4.2B manufacturing facility at
Investment Company (ATIC), launched need to be strong in development and the Luther Forest Technology Campus
.com
and outlined plans in the industry. ensure we have a range of foundries in Saratoga County, NY, in 2009. This
GlobalFoundries will be led by a available to get products to market,” new facility will be named Fab 2 and is
management team including CEO Doug said Simon Segars, Executive VP and expected to create approximately
square4
Issue II 2009
Grose, formerly senior VP at AMD and GM PIPD, ARM. “Through the 1,400 new direct jobs and more than
Chairman of the Board Hector Ruiz, integration of our processor and 5,000 indirect jobs in the region.
formerly executive chairman and physical IP and collaboration activities, “Despite the current economic
chairman of the board at AMD. It is the we drive the adoption of consumer climate, this is an industry with
only U.S. based global semiconductor electronics. We look forward to tremendous opportunities for long-
foundry company and commences working with GlobalFoundries as we term growth and innovation,” said
operations with approximately 2,800 explore implementing the ARM Waleed Al Mokarrab, Chairman, ATIC.
employees worldwide. platform on their process technology.” Dirk Meyer, president and CEO of
“The launch of GlobalFoundries GlobalFoundries is proceeding with AMD said, “GlobalFoundries is the only
represents a historic day for our plans to expand its Dresden lines by partner with the capabilities to extend
industry, one which will permanently bringing a second 300mm facility with AMD’s scale capacity.”
change the market landscape by bulk silicon capabilities online in late Despite economic impacts on the
launching the world’s first truly global 2009. The Dresden cluster will be re- industry, long term growth is strong. An
foundry services provider,” said Doug named Fab 1 with Module 1 initially increasing number of chip-makers are
Grose, CEO of GlobalFoundries. focused on production of high exiting manufacturing and instead are
GlobalFoundries will service the performance 45nm SOI technology and looking to independent foundry
manufacturing needs of AMD and will Module 2 transitioning to 32nm bulk companies for a secure outside source
also offer an expanded roadmap of silicon capabilities. of manufacturing production.
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