AMD CEO sees 'immense' benefit from Intel settlement

Dirk Meyer expects more business for AMD and more choice for its customers

The recent legal settlement between Intel and Advanced Micro Devices will bring new business to AMD and major benefit for its customers, the chip maker said Wednesday.

It will still take years for the chip market to become truly competitive but AMD expects to begin raising its market share immediately, including for notebook CPUs, company CEO Dirk Meyer said at a news conference.

"Our customers will have the freedom to choose AMD like they haven't in the past," Meyer said. "The promise for benefit is immense."

Intel and AMD last month agreed to drop a series of lawsuits including antitrust cases brought by AMD, which had alleged that Intel was using methods such as illegal discounts for customers to boost its market share. As part of the settlement, Intel agreed to pay US$1.25 billion in cash to AMD.

Both that settlement and an antitrust ruling by the European Union against Intel have opened immediate market opportunities for AMD, said Meyer. Without giving names, he listed a European retailer and a company that used to buy only desktop chips from AMD as examples of where added business will come from. AMD expects to get notebook business from the desktop-only buyer, Meyer said.

The European Commission earlier this year fined Intel $1.45 billion for abusing its dominant market position at the expense of AMD.

Notebooks are an immediate growth opportunity for AMD since the company's share in that sector has trailed its share in desktops, but there is no technological barrier for growth in its notebook chips, said Meyer.

"Clearly notebooks are a big target area for us," he said. "All of the growth in our industry is being driven by notebooks. Desktops are essentially flat."

Emerging markets are also a key growth opportunity and China is set eventually to become AMD's biggest market, said Meyer, who was speaking in Beijing.

Another result of the Intel settlement will be a lower AMD stake in GlobalFoundries, the contract chip maker that AMD spun off early this year. Part of the settlement ended a legal battle over whether a cross-licensing agreement with Intel permitted AMD to outsource chip production to GlobalFoundries since it is not an AMD subsidiary. A new agreement will let AMD use any contract chip maker.

"What that means is we can accelerate the pace at which we change the ownership structure of GlobalFoundries," said Meyer. A deal in which GlobalFoundries merges with Singapore's Chartered Semiconductor will reduce AMD's stake in its former manufacturing arm, which is now a joint venture. That could free AMD of the need to include GlobalFoundries on its consolidated financial statements, said Meyer.

AMD has no immediate plans to sell the stake it will still hold in GlobalFoundries after the Chartered deal, Meyer said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags intelAMDintel antitrust

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Owen Fletcher

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?