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Document Details Allegations Against Intel in Korea

Don Clark — Thu, 12 Mar 2009 18:22:36 +0000

Intel’s (INTC) antitrust troubles haven’t gotten as much attention as Microsoft’s (MSFT), in large part because most evidence concerning the chip maker’s tactics remains locked up in confidential documents. But some new, unflattering details about one investigation are coming to light.

In January, the Korean Federal Trade Commission produced a 133-page public version of its findings against Intel, which it announced last June without providing many specifics. A Korean-speaking research fellow working with a non-profit advocacy group, the American Antitrust Institute, subsequently produced a 15-page translation of sections of the bigger document (which was noted this week by the Inquirer).

The excerpts lay out a series of carrots and sticks that Intel allegedly offered Samsung Electronics Co. and Sambo Computer–-two big PC makers in Korea–-to reduce chip purchases from rival Advanced Micro Devices Inc. (AMD) and keep Intel as their main supplier. For example, the document suggests that Intel withheld rebates from Samsung in 2002 to punish it from starting to use AMD chips, later coming up with a more attractive collection of incentives that eventually led Samsung to curtail purchases from AMD.

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Absolutely Fabless

John Paczkowski — Tue, 07 Oct 2008 14:11:30 +0000

If it’s true that “real men have fabs,” as Advanced Micro Devices Inc. Chairman W. J. “Jerry” Sanders III (at right in Indiana Jones drag) once said, then AMD is the semiconductor industry’s latest eunuch. This morning the chipmaker said it will spin off its manufacturing operations, splitting itself into two companies–one to design chips and one to make them. The new manufacturing company, called Foundry Co., will be a joint venture between AMD and two Abu Dhabi investment firms–Mubadala Development Co. and Advanced Technology Investment Co.–that have agreed to provide it with some $6 billion in financing to build a new chip fabrication plant, or fab, in upstate New York and upgrade one of two AMD fabs near Dresden, Germany.

A bold move for AMD (AMD), which has sustained seven straight quarters of losses, and one that could dramatically alter its fortunes. Indeed, right off the bat, AMD will push $1.2 billion in debt off its books and onto those of the The Foundry Co. “This is the biggest announcement in our history” said CEO chief executive, Dirk Meyer. “This will make us a financially stronger company, both in the near term and in the long term, as a result of being out from the capital expense burden we have had to bear.”